12 September 2008
This is in regard to a public co in India not listed which is a 99 % subsidiary of a LLP in US, being held by director and some of his family members. Goods are Purchased from a foreign country byt the indian subsidiary and payment is directly made by a director to the outside party.
This payment is treated as unsecured loans in the books.
For violating the FEMA rules, RBI imposes a fine and asks the co to comlpy with RBI interest rate guidelines and loan reg No.
Director has waived off interest completely on this loan, are there any RBI implications ?
CAclubindia
