We have a branch office(Company incorporated in india) in singapore. We make trading from singapore. We receive payment and make payment from sinpore itself. Whether these transaction are permissible as per FEMA. or should route payment and receivable thru India only
09 March 2011
Yes the transactions are permissible provided they are conducting normal business activities of the Indian entity;
Also the Overseas Branch/Officer/representative shall not— (a) Enter into any contract or agreement in contravention of the Act, Rules or Regulations made there under; (b) Create any financial or contingent liabilities for Head Office in India. (c) Invest surplus fund abroad without, prior approval of Reserve Bank of India but such surplus fund should be repatriated to Head Office in India.
CAclubindia
