Foreign exchange remittance limit for entities other than individuals

Entiites other than individuals can remit funds outside India for the following purposes which are stipulated under Para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015.

1. They may donate up to one percent of its foreign exchange   earnings during the previous three financial years or USD 5,000,000, whichever is less. Such donations shall be for following purposes
2. Creation of Chairs in reputed educational institutes,
3. Contribution to funds (not being an investment fund) promoted by educational institutes; and
4. Contribution to a technical institution or body or association in the field of activity of the donor Company.
5. They may remit Commission, per transaction; to agents abroad for sale of residential flats or commercial plots in India up to USD 25,000 or five percent of the inward remittance whichever is less.
6. They may remit up to USD 10,000,000 per project for any consultancy services in respect of infrastructure projects and USD 1,000,000 per project, for other consultancy services procured from outside India.
7. An entity in India is allowed to remit up to five per cent of investment brought into India or USD 100,000 whichever is less, by way of reimbursement of pre-incorporation expenses.

 AD banks,  after their satisfaction with the genuineness of the transaction, are authorized to dispose of all residual current account transactions undertaken by such entities that are otherwise permissible without any specified limit. Anything above limits requires prior approval of the Reserve Bank of India.

Related Posts:

x