07 October 2011
I have the following queries related to Disclosure for Foreign Exchange Transactions
1.If an employee spends in foreign currency and then later the company reimburses it
2.The company gives for e.g.200 US dollars to the employee to spend and later the total cost of the employee comes to be 300 US dollars of which the shortfall of 100 US dollars is paid by the employee,the company reimburses the balance 100 US dollars in INR,
Will these cases be counted under foreign currency transaction & will be required for disclosure in Notes ?
Both of you failed to appreciate a fact that when an employee has gone with USD 200 & in foriegn country he buy USD 100, how he got the money (lets say INR 4800) in that country. It is illegal to carry INR in foreign country. So your query itself seems to be acedemic.
Or if the query is real, you have committed a crime under FEMA
11 October 2011
Dear Mr Maninder. Carrying of INR abroad is not a crime. There are money changers abroad where you can officially exchange your currency !!!. Further company has given USD 200, can employee not carry his own funds??? Which could be reimbursed by Co if spent for official purpose. This is very much a practical query.
Further query is of disclosure in notes under foreign exchange outgo of company for which same needs to be disclosed.
Request you to refer to FAQ issued by RBI wherein a person going abroad can carry INR upto Rs.5000/- to countries other than Nepal & Bhutan.
In case of any contrary views, request to clarify for my academic interest.
CAclubindia
