Anirudh Raheja (Manager-Taxation) (28 Points)
28 May 2009We are having 2 project offices of Foreign Company executing a DMRC project in India.
Seperate books and bank accounts are maintained as per the RBI regulations.
can we make expenditures from bank account of one project for another project.?can we transfer funds from bank account of one project into the bank account of another?Any permission required from RBI?
Sangeet Hunjan
(Company Secretary)
(92 Points)
Replied 03 June 2009
Anirudh
You must have obtained an approval from RBI when these project offices were established. Normally these approvals are given subject to certian conditions. Please check the conditions relating to - Utilisation of funds generated and whether the approval says that the project office shall operate with moneys obtained from Head office(foreign Co) only.
Anirudh Raheja
(Manager-Taxation)
(28 Points)
Replied 04 June 2009
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Originally posted by :Sangeet Hunjan Sangeet Thanx for your reply.i have gone thru the conditions of approval.It is silent about the utilizaton of the funds .We are getting remmitance from Japan .Some expenditures were made for another project of the same company like salaries,car hire ,telephone expenses etc.We were having one project running but for another project some permissions were required to be taken.Till we get permission for another project we made certain expenditures from the existing project .I want to know whether some permission is required for making some expenditure |
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| " | Anirudh You must have obtained an approval from RBI when these project offices were established. Normally these approvals are given subject to certian conditions. Please check the conditions relating to - Utilisation of funds generated and whether the approval says that the project office shall operate with moneys obtained from Head office(foreign Co) only. |
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