09 August 2008
Dear Sir i hv one query one Pvt Co which parent comapny is American Company, received many times remmitance money from parant co. USA as a Working Capital Loan and also some other receipt during the year. i just want to know that any FEMA Compliance is attracted on the company which company have to fulfill. plz advise me on this issue thax
10 August 2008
In case of remittances received by an indian pvt ltd co from its foreign parent co , the indian co. have to intimate RBI about the remittance within 30 days of recipt abount the purpose, date, remitter, firc no etc. & within 6 months that money have to be converted into equity if the same is against the equity & have to file Form FCGPR-Part A with in 30 days of equity issue. Another compliance required is to file Form FCGPR-Part B on or before 30th June which is an annual report about the foreign remittances & the foreign liability outstanding at the end of the year.
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