02 December 2008
Facts: A company had taken ECB for import of a machine. The whole ECB has been drawn down and utilised for the machine and the machine has been installed in the earlier months. The ECB will be repaid after some years.
Query: Is it still necessary to get Form ECB-2 certified from a chartered accountant even when the whole amount has been utilised in earlier months for which CA certificate has already been submitted along with the relevant month's ECB-2 ?
The ECB master circular contains Form ECB-2 which states that it has to be submitted monthly, even if it is a NIL return. However the certificate of CA contained in Form ECB-2 states that the CA hereby certifies that the loan amount has been duly accounted for in books and the utilisation is as per the ECB guldelines. In my case the loan has already been accounted for and utilised in earlier months which has already been certified. So for the current month actually there is nothing which needs to be certified. It is only a repeated certification of the same thing. What's your opinion ?
CAclubindia
