A newly formed pvt ltd co is yet to obtain IE CODE. It wants to make purchase advance to a foreign entity. Since it doesn't have IE CODE it wants to remit the payment through its sister concern in which one of the directors is proprietor. Is it permissible under FEMA..? pls reply asap.
20 August 2012
Noted that "as per para 2.8 (iii) of foreign trade policy 2009-2014, a person (exporter/ importer) is exempt from IEC code if they are importing / exporting the goods for personal use / agriculture purpose"
if your sister concern company's Name is mentioned in IEC code it it is admissible to remit money.
20 August 2012
No. This is not personal/agricultural transaction. This is business transaction. I modify my question.
1)Whether IE CODE IS REQUIRED FOR MAKING ADVANCE PAYMENT TO FOREIGN ENTITY FOR CURRENT ACCOUNT TRANSACTION?
2)As the company yet to obtain IE CODE, can the payment routed through sister concern (transferring amount to sister concern and from there to foreign entity but invoice and shipment only to original company only the payment is routed through sister concern)
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