An indian based comapny can lend the money from Foreign company for its working capital.
If it can. Please suggest ...
5 Replies
C.A. Sanjay Bhatia
(CA)
(496 Points)
Replied 22 February 2008
it is capital account transaction so u have to follow rbi regulations
Ruchika Gupta
(Chartered Accountant)
(247 Points)
Replied 23 February 2008
A Person Resident in India (PRI) can raise loan in foreign currency from a Person Resident Out of India (PROI). Its a Capital Account Transaction and has been permitted by RBI in Schedule 1. However one has to follow prescribed conditions, file prescribed declaration and enter into transaction with in prescribed limits given in the regulations of RBI relevant to the transaction.
Nagaraju Pogula
(Partner)
(175 Points)
Replied 26 February 2008
what are the prescribed conditions.... may I know please
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 02 April 2011
The ECB guidelines donot permit loan for working capital purposes
rvsekar2000
(212 Points)
Replied 20 June 2011
Hello,
Please click the following link to know more about the subject:
https://rvseckarfema.blogspot.com/2010/09/can-ecb-raised-for-repayment-of-term.html
Regards
R.V..Seckar
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