If a froeign director transfer funds from their personal account to its employee for clearing the expense of the company formed in india.what is the applicaple section under companies act
Please Reply as its urgent
chaitali (Article) (83 Points)
16 April 2010If a froeign director transfer funds from their personal account to its employee for clearing the expense of the company formed in india.what is the applicaple section under companies act
Please Reply as its urgent
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 April 2010
This transaction may be considered as loan from director to the company.
Loan from director to the company is exempt from the deposit provisions u/s 58A under the acceptance of deposit rules, 1975. So there is no need to worry.
But remittance of money in india may be a problem from RBI perspective.
Views of othere learned members solicited.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 16 April 2010
Agreed wid the above view..
u have to check FEMA,1999 & rules made their under for remittance of foreign exchange.
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