Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

November 2009

A.P. (DIR Series) Circular No. 10, dated 5-10-2009 : Foreign Exchange Management Act, 1999 — Advance remittance for import of services.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d

New Page 1

Given below are the highlights of certain RBI Circulars.

  1. A.P. (DIR Series) Circular No. 10, dated 5-10-2009 : Foreign Exchange Management Act, 1999 — Advance remittance for import of services.

Presently, the limit for advance remittance for all permissible current account transactions for import of services without obtaining a Bank Guarantee from the foreign supplier is US $ 500,000 or its equivalent.

This circular clarifies that the said limit of US $ 500,000 or its equivalent is not applicable to Public Sector Companies/Undertakings and Central/State Government Departments. And the limit for them continues to be US $ 100,000 or its equivalent. For advance remittance in excess of US $ 100,000 or its equivalent prior permission is required to be obtained from the Ministry of Finance, Government of India.

Download PDF

You May Also Like

Foreign Exchange Management (Deposit) Regulations, 2000 — Loans to Non-Residents/Third Party against security of Non-Resident (External) Rupee Accounts [NR(E)RA]/Foreign Currency Non-Resident (Bank) Accounts [FCNR(B)] — Deposits

A.P. (DIR Series) Circular No. 11, dated 5-10-2009 : Issue of Bank Guarantee on behalf of service importers.