Foreign Exchange Management Act (FEMA), 1999 – Current Account Transactions – Liberalisation

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.... February 24, 2004 To All Authorised Dealers in Foreign Exchange Madam/Sirs, Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Liberalisation Attention of Authorised Dealers (ADs) is invited to Annexure I of A.D. (M.A. Series) Circular No.11 dated May 16, 2000 with regard to Rules relating to Current Account Transactions. 2. As a step towards further....

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.... In terms of item No.11 of Schedule III, remittance by way of commission to agents abroad for sale of residential flats/commercial plots in India, exceeding 5 per cent of the inward remittance requires RBI's approval. ADs may freely allow such remittances upto USD 25,000 or 5 per cent of the inward remittance, per transaction, whichever is higher. (iv) Short-term Credit to Overseas Offices of....

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....may allow remittances for royalty and payment of lump-sum fee provided the payments are in conformity with the norms as per item No.8 of Schedule II i.e. royalty does not exceed 5 per cent on local sales and 8 per cent on exports and lump-sum payment does not exceed USD 2 million. (vii) Remittance for Use and/or Purchase of Trademark/Franchise in India. In terms of item No.16 of Schedule III....