RBI APPROVAL

[Guest]

IF GOODS ARE SUPPLIED TO COMPANY IN INDIA AND BILLING IS DONE TO COMPANY IN UAE. REMITANCE WILL BE RECEIVED IN USD FROM UAE DO WE NEED TO TAKE PRIOR APPROVAL FROM RBI FOR SUCH CASES. IF NO PLEASE GIVE REFERNECE TO CIRCULAR/NOTIFICATION ETC.

[Surender Gupta]

There is no specific provision about this in accordance with my knowledge. But, you must provide the details to bank before getting the remittance to avoid the allegation of illegal money.

AI Summary

Prior approval for foreign remittance: no specific RBI requirement; provide full transaction details to the bank before receipt. No specific provision was identified requiring prior Reserve Bank approval where goods supplied in India are invoiced abroad and remittance is received in foreign currency; taxpayers should provide full transaction details to the receiving bank to permit verification and to guard against allegations of receipt of illegal funds.