https://www.taxtmi.com/article/detailed?id=13336 Contravention of current account restrictions under the Foreign Exchange Management Act occurs when foreign exchange is acquired or used for purposes other than declared, not surrendered, or applied to unauthorized purposes. Rule 4 and Schedule II prescribe specific transactions requiring prior government approval or registration. Penalties on adjudication can reach up to three times the quantifiable amount or a statutory maximum where not quantifiable, with additional daily penalties for continued breaches. An enforcement example hinges on whether audited financial statements establish that royalty remittances fell within permissible limits and whether authorities produced contradicting evidence. en-us Thu, 16 Jan 2025 09:01:43 +0530 Thu, 16 Jan 2025 09:01:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=13336 Contravention of current account restrictions under the Foreign Exchange Management Act occurs when foreign exchange is acquired or used for purposes other than declared, not surrendered, or applied to unauthorized purposes. Rule 4 and Schedule II prescribe specific transactions requiring prior government approval or registration. Penalties on adjudication can reach up to three times the quantifiable amount or a statutory maximum where not quantifiable, with additional daily penalties for continued breaches. An enforcement example hinges on whether audited financial statements establish that royalty remittances fell within permissible limits and whether authorities produced contradicting evidence. Articles FEMA - Foreign Exchange Management Thu, 16 Jan 2025 09:01:43 +0530 https://www.taxtmi.com/article/detailed?id=13336