Can AD bank approve for extension of the project account after the tenure of the project for genuine reasons like completion of warranty period, statutory works like Income tax assessments, VAT assessments, Service tax assessments, to make arrangements for the sale of assets etc.
Liaison / Branch / Project Offices of foreign entities in India - As on Dec 26, 2016
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Extension of project account permitted with authorised dealer approval and RBI intimation for genuine post tenure compliance needs. Authorised dealers may approve extensions of project accounts after project tenure for genuine post completion reasons such as warranty completion, statutory tax and service tax assessments, and arranging asset sales, provided the authorised dealer intimates the Reserve Bank, Foreign Exchange Department, CO Cell.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Extension of project account permitted with authorised dealer approval and RBI intimation for genuine post tenure compliance needs.
Authorised dealers may approve extensions of project accounts after project tenure for genuine post completion reasons such as warranty completion, statutory tax and service tax assessments, and arranging asset sales, provided the authorised dealer intimates the Reserve Bank, Foreign Exchange Department, CO Cell.
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