13 January 2012
We have a firm XYZ & Co. Ltd. A, B, C & D working in the firm, frequently travelling for Foreign Business trips. We are aware that a person can avail foreign exchange up to USD 25,000 per visit. Suppose A, B, C & D, everyone going for the same Business trip representing the firm, everyone is availing USD 10000 each.
So, whether it would be considered under Rule 6(1) under the automatic route of drawing foreign exchange available? i.e. each person under the entity of XYZ & Co. Ltd. will enjoy separate limit of Rs. 25000/- USDs or the entire USD 40000 shall be compared to the limit of 25000/- USD wherein person means XYZ Co. Ltd.
Who will be person in such a case?
Q1: What does a person mean? Whether a person is firm or it is an individual employee of the firm who is travelling for the business trip. Whether limit of USD 25000 would be applicable to the whole firm or for each individual employee?
What is a Business trip?
Q2: What does business trip mean? Does it mean one trip of XYZ & Co. Ltd wherein all the employees as mentioned above are traveling? This means 4 persons traveling to same place for same cause (even though the dates & places of ongoing travel are different? Or shall it mean one employee of the Co. to One place/time/date etc. This mean if 4 employees are traveling together or differently to the same place for the same cause, will still be considered 4 different trips.
CAclubindia
