12 February 2013
If a company is resident in India having balance account in foreign bank an it is transferring the amount from the account to subsidiary outside India directly. Amount has not entered in India.
19 February 2013
Here first question is how the Indian Company is holding account outside India. Is it a star exporter and the prescribed guidelines have been met before opening Bank account outside India.
Also the advisable and correct route as per FEMA and TP provisons shall be to transfer the money to subsidiary and then pay its creditors.
The amount thus paid can be shown as ODI or loan as per the requirements of the case.
CAclubindia
