Mahesh Babu (Business) (37 Points)
04 January 2011We have imported raw material worth 20,000/-usd from dubai, payment for the same is done by cash by one of our directors during his visit to dubai.The supplier gave the receipt on the name of the company.Now my question is can we show this payment in our books of accounts and close the transaction with the bank.Kindly advice
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 04 January 2011
under FEMA, a person on going to business tour outside india can take only USD-25000 from authorised dealer. for excess of USD25000, prior permission of RBI is required.
If there is valid explanation that he has paid out of USD-25000 (Because for his other expenses, he had only USD-5000) & there is proper proof of USD exchange in india, then u can consider in ur books of account.
Mahesh Babu
(Business)
(37 Points)
Replied 04 January 2011
thanks for the reply Mr.Vikash, how shall I approach my banker regarding this transaction, so that I will not face any problem from RBI in future.Please advice
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