Project Offices — Intermittent remittances and Foreign Currency Accounts in India

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....nce of Assets) Regulations, 2000; Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time, as well as AP (DIR Series) Circular no. 37 dated November 15, 2003. 2. At present, AD banks are required to obtain Reserve Bank approval for opening of foreign currency accounts of the Project Offices set up in India by foreign companies. In order to further liberalise the procedure for Project Offices, it has been decided to allow Authorised Dealers to open foreign currency accounts for the Project Offices (established under the general/specific approval of Reserve Bank), as well as to permit intermittent remittances by Project Offices without Reserve Bank approval subject to the conditions stipulated hereunder. 2.1 Ope....

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....of the transaction and subject to the following: o The Project Office submits an Auditors' /Chartered Accountants' Certificate to the effect that sufficient provisions have been made to meet the liabilities in India including Income-Tax etc. o An undertaking from the Project Office that the remittance will not, in any way, affect the completion of the Project in India and that any shortfall of funds for meeting any liability in India will be met by inward remittance from abroad. 2.3 Reporting requirements: The foreign company establishing a Project Office in India is to furnish a report through the concerned AD branch, to the concerned Regional Office of Reserve Bank of India under whose jurisdiction the Project Office is set up....