ABOUT fema

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CA Akhil Rastogi (Querist)
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01 October 2007 a co who has subsidary and operation in foreign . when is employees goes to abroad nad the co gave them foreign currency and after returning the employee settles his account and return the foreign currency to the co. than in that case books main entry treatment kya hoga and can co . froeign currency apane pass rakh sakati hai . if yes to kab tak is there any provision in fema let me plz tell with reference

akhil rastogi
Ca final

Srinath A. N.

Srinath A. N. (Expert)
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03 October 2007 Unspent foreign exchange brought back to India by a traveller should be surrendered to an authorised person within 90 days from the date of return of the traveller, in case unspent foreign exchange (FE) is in the form of currency notes. If such FE is in the form of travellers cheques, the same should be surrendered within 120 days from the date of return. The exchange brought back can be utilised for subsequent travells within said period.

However, it is also permitted to retain foreign currency travellers cheques and currency notes upto an aggregate amount of USD 2000 and foreign coins without any ceiling.

Reference - Section 5 of FEMA and
Current Account Transaction Rules