Inter company transaction between foreign holding and indian

Cherry Bansal (Practicing Chartered Accountant)   (80 Points)

03 January 2012  

Dear Friends,

I need your advice on below matter:
 
" India Company needs to make some payment in India. It is a running company. But due to unavailability of signatories the payment was done from the personal account of an employee in Holding Company out of India.The payment was done directly from employee account  to India Vendor account."
 
I need the solution on how to book this transaction:
 
in my views" it can be shown as intercompany transaction and Foreign Company will raise a dr. note on India company and India company will pay to foreign company against that dr. notewhich in turn will pay to its employee."
 
Does this transaction complies with the requirements of FEMA?
 
I oblige your reply.
 
Thanks
Cherry