TaxTMI 
TaxTMI 
Master Circular on Exports of Goods and Services
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....tion from Declarations B.2 Manner of Receipt and Payment B.3 Realisation and Repatriation of export proceeds B.4 Foreign Currency Account B.5 Diamond Dollar Account (DDA) B.6 Exchange Earners' Foreign Currency (EEFC) Account B.7 Setting up of Offices Abroad and Acquisition of Immovable Property for Overseas Office B.8 Advance Payments against Exports B.9 GR Approval for Trade Fair/Exhibitions abroad B.10 GR approval for Export of Goods for re-imports B.11 Part Drawings /Undrawn Balances B.12 Consignment Exports B.13 Opening / Hiring of Ware houses abroad B.14 Direct dispatch of documents by the exporter B.15 Invoicing of Software Exports B.16 Short Shipments and Shut out Shipments B.17 Counter-Trade Arrangement B.18 Export of Goods on Lease, Hire, etc. B.19 Export on Elongated Credit Terms B.20 Export of goods by Special Economic Zones (SEZs) B.21 Project Exports and Service Exports B.22 Export of Currency B.23 Forfaiting B.24 Exports to neighbouring countries by Road, Rail or River B.25 Border Trade with Myanmar B.26 Repayment of State Credits B.27 Counter -Trade Arrangements with Romania PART - 3 C. Operational Guidelines for....
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....ign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank has notified the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 relating to export of goods and services from India, hereinafter referred to as the 'Export Regulations'. These Regulations have been notified vide Notification No. FEMA 23/2000-RB dated May 3, 2000, as amended from time to time. (iii) The Directions contained in this Circular should be read with the Rules notified by the Government of India, Ministry of Finance, vide Notification No.G.S.R.381 (E) dated May 3, 2000, (Annex - 1) as also Regulations notified by Reserve Bank vide its Notification No. FEMA 23/2000-RB dated May 3, 2000, as amended from time to time (Annex - 2). (iv) In terms of Regulation 4 of the Foreign Exchange Management (Guarantees) Regulations, 2000, notified vide Notification No. FEMA 8/2000-RB dated May 3, 2000, AD Category - I banks have been permitted to issue guarantees on behalf of exporter clients on account of exports out of India subject to specified conditions. (v) There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Dire....
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....xported shall be received through an AD Bank in the manner specified in the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2000 notified vide Notification No. FEMA.14/2000-RB dated May 3, 2000 (Annex-3) in the following manner: a. Bank draft, pay order, banker's or personal cheques. b. Foreign currency notes/foreign currency travellers' cheques from the buyer during his visit to India. c. Payment out of funds held in the FCNR/NRE account maintained by the buyer d. International Credit Cards of the buyer. Note: When payment for goods sold to overseas buyers during their visits is received in this manner, GR/SDF (duplicate) should be released by the AD Category - I banks only on receipt of funds in their Nostro account or if the AD Category - I bank concerned is not the Credit Card servicing bank, on production of a certificate by the exporter from the Credit Card servicing bank in India to the effect that it has received the equivalent amount in foreign exchange, AD Category - I banks may also receive payment for exports made out of India by debit to the credit card of an importer where the reimbursement from the card issuing bank/ organisation will be r....
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....; and III. Charge back to the importer where the exporter has failed in discharging his obligations under the sale contract. f. The balances held in the NOSTRO collection account shall be repatriated and credited to the respective exporter's account with a bank in India immediately on receipt of the confirmation from the importer and, in no case, later than seven days from the date of credit to the NOSTRO collection account. g. AD Category -I banks shall satisfy themselves as to the bonafides of the transactions and ensure that the purpose codes reported to the Reserve Bank in the online payment gateways are appropriate. h. AD Category -I banks shall submit all the relevant information relating to any transaction under this arrangement to the Reserve Bank, as and when advised to do so. i. Each NOSTRO collection account should be subject to reconciliation and audit on a quarterly basis. j. Resolution of all payment related complaints of exporters in India shall remain the responsibility of the OPGSP concerned. k. OPGSPs who are already providing such services as per the specific holding-on approvals issued by the Reserve Bank shall open a liaison office in India within three....
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....rade Policy : Within a period of twelve months from the date of export; iii. By 100 % Export Oriented Units (EOUs) and units set up under Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Biotechnology Parks (BTPs) schemes : Within a period of twelve months from the date of export on or after September 1, 2004; iv. Goods exported to a warehouse established outside India : As soon as it is realised and in any case within fifteen months from the date of shipment of goods; and v. . In all other cases: With effect from May 20, 2013 this period of realization and repatriation to India has been brought down to nine months from the date of export, till September 30, 2013. [Ref: . A.P.(DIR Series) Circular No.105 dtd 20-05-2013] B.4 Foreign Currency Account (i) Participants in international exhibition/trade fair have been granted general permission vide Regulation 7(7) of the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) Regulations, 2000 notified vide Notification No. FEMA 10/2000-RB dated May 3, 2000 for opening a temporary foreign currency account abroad. Exporters may deposit the foreign exchange obtained by ....
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....March) are permitted to transact their business through Diamond Dollar Accounts. (ii) They may be allowed to open not more than five Diamond Dollar Accounts with their banks. (iii) Eligible firms and companies may apply for permission to their AD Category - I banks in the format prescribed. (iv) AD Category-I banks are required to submit quarterly reports to the Foreign Exchange Department, Reserve Bank of India, Central Office, Trade Division, Mumbai, giving details of name and address of the firm / company in whose name the Diamond Dollar Account is opened, along with the date of opening / closing the Diamond Dollar Account, by the 10th of the month following the quarter to which it relates. (v) AD Category - I banks are required to submit a statement giving the data on the DDA balances maintained by them on a fortnightly basis within seven days of close of the fortnight to which it relates, to the Foreign Exchange Department, Reserve Bank of India, Central Office, Trade Division, Mumbai. (vi) Condition mentioned at Para B.6 (iv) shall also apply. B.6 Exchange Earners' Foreign Currency (EEFC) Account (i) A person resident in India may open with, an AD Category - I bank in....
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....ed or investment received from outside India or those received for meeting specific obligations by the account holder. b. Payments received in foreign exchange by a unit in Domestic Tariff Area (DTA) for supplying goods to a unit in Special Economic Zone out of its foreign currency account. (vi) AD Category - I banks may permit their exporter constituents to extend trade related loans / advances to overseas importers out of their EEFC balances without any ceiling subject to compliance of provisions of Notification No. FEMA 3/2000-RB dated May 3, 2000 as amended from time to time. (vii) AD Category - I banks may permit exporters to repay packing credit advances whether availed in Rupee or in foreign currency from balances in their EEFC account and / or Rupee resources to the extent exports have actually taken place. B.7 Setting up of Offices Abroad and Acquisition of Immovable Property for Overseas Offices (i) At the time of setting up of the office, AD Category - I banks may allow remittances towards initial expenses up to fifteen per cent of the average annual sales/income or turnover during the last two financial years or up to twenty-five per cent of the net worth, whicheve....
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....nts; and * the documents covering the shipment are routed through the AD Category - I bank through whom the advance payment is received. Provided that in the event of the exporter's inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the said period of one year, without the prior approval of the Reserve Bank. (2) 'AD Category- I banks may allow exporters to receive advance payment for export of goods which would take more than one year to manufacture and ship and where the 'export agreement' provides for shipment of goods extending beyond the period of one year from the date of receipt of advance payment subject to the following conditions:- i. the KYC and due diligence exercise has been done by the AD Category -I bank for the overseas buyer; ii. compliance with the Anti Money Laundering standards has been ensured; iii. the AD Category-I bank should ensure that export advance received by the exporter should be utilized to execute export and not for any other purpose i.e., the transact....
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....heir internal inspectors/auditors. B.10 GR approval for Export of Goods for re-imports (i) AD Category - I banks may consider request from exporters for granting GR approval in cases where goods are being exported for re-import after repairs / maintenance / testing / calibration, etc., subject to the condition that the exporter shall produce relative Bill of Entry within one month of re-import of the exported item from India. (ii) Where the goods being exported for testing are destroyed during testing, AD Category - I banks may obtain a certificate issued by the testing agency that the goods have been destroyed during testing, in lieu of Bill of Entry for import. B.11 Part Drawings /Undrawn Balances (i) In certain lines of export trade, it is the practice to leave a small part of the invoice value undrawn for payment after adjustment due to differences in weight, quality, etc., to be ascertained after arrival and inspection, weighment or analysis of the goods. In such cases, AD Category - I banks may negotiate the bills, provided: * The amount of undrawn balance is considered normal in the particular line of export trade, subject to a maximum of 10 per cent of the full expor....
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.... cent of exports made during the previous financial year. * Applicant has a minimum export turnover of USD 100,000/- during the last financial year. * Period of realisation should be as applicable. * All transactions should be routed through the designated branch of the AD Banks. * The above permission may be granted to the exporters initially for a period of one year and renewal may be considered subject to the applicant satisfying the requirement above. * AD Category - I banks granting such permission/approvals should maintain a proper record of the approvals granted. B.14 Direct dispatch of documents by the exporter (i) AD Category - I banks should normally dispatch shipping documents to their overseas branches/correspondents expeditiously. However, they may dispatch shipping documents direct to the consignees or their agents resident in the country of final destination of goods in cases where: * Advance payment or an irrevocable letter of credit has been received for the full value of the export shipment and the underlying sale contract/letter of credit provides for dispatch of documents direct to the consignee or his agent resident in the country of final destina....
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....ii) Contracts involving only 'one-shot operation', the invoice/bill should be raised within 15 days from the date of transmission. (iii) The exporter should submit declaration in Form SOFTEX in quadruplicate in respect of export of computer software and audio / video / television software to the designated official concerned of the Government of India at STPI / EPZ /FTZ /SEZ for valuation / certification not later than 30 days from the date of invoice / the date of last invoice raised in a month, as indicated above. The designated officials may also certify the SOFTEX Forms of EOUs, which are registered with them. (iv) The invoices raised on overseas clients as at (i) and (ii) above will be subject to valuation of export declared on SOFTEX form by the designated official concerned of the Government of India and consequent amendment made in the invoice value, if necessary. B.16 Short Shipments and Shut out Shipments (i) When part of a shipment covered by a GR form already filed with Customs is short-shipped, the exporter must give notice of short-shipment to the Customs in the form and manner prescribed. In case of delay in obtaining certified short-shipment notice from the Cust....
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.... I banks, to the Regional Office concerned of the Reserve Bank, giving full particulars of the goods to be exported. B.19 Export on Elongated Credit Terms Exporters intending to export goods on elongated credit terms may submit their proposals giving full particulars through their banks for consideration to the Regional Office concerned of the Reserve Bank. B.20 Export of goods by Special Economic Zones (SEZs) (A) Units in SEZs are permitted to undertake job work abroad and export goods from that country itself subject to the conditions that: i. Processing / manufacturing charges are suitably loaded in the export price and are borne by the ultimate buyer. ii. The exporter has made satisfactory arrangements for realisation of full export proceeds subject to the usual GR procedure. AD Category - I banks may permit units in DTAs to purchase foreign exchange for making payment for goods supplied to them by units in SEZs. (B) Export of Services by Special Economic Zones (SEZs) to DTA Unit Authorised Dealer Banks are permitted to sell foreign exchange to a unit in the DTA for making payment in foreign exchange to a unit in the SEZ for the services rendered by it (i.e. a unit i....
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.... transfer of funds will be monitored by the AD Category - I bank(s) / EXIM Bank / Working Group. (iii) Deployment of Temporary Cash Surpluses Project / Service exporters may deploy their temporary cash surpluses, generated outside India, in the following instruments / products, subject to monitoring by the AD Category - I bank(s) / EXIM Bank / Working Group : * investments in short-term paper abroad including treasury bills and other monetary instruments with a maturity or remaining maturity of one year or less and the rating of which should be at least A-1/AAA by Standard & Poor or P-1/Aaa by Moody's or F1/AAA by Fitch IBCA etc. , * deposits with branches / subsidiaries outside India of AD Category - I banks in India. (iv) Repatriation of Funds in case of On-site Software Contracts [C 1 (ii)] The requirement of repatriation of 30 per cent of contract value in respect of on-site contracts by software exporter company / firm has been dispensed with. They should, however, repatriate the profits of on-site contracts after completion of the contracts as per para B.7 (vii), ibid. B.22 Export of Currency In terms of Foreign Exchange Management (Export and Import of Currency) Re....
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....hould follow the guidelines stipulated in A.P.(DIR Series) Circular No.17 dated October 16, 2000. B.26 Repayment of State Credits Export of goods and services against repayment of state credits granted by erstwhile USSR will continue to be governed by the extant directions issued by the Reserve Bank, as amended from time to time. B.27 Counter -Trade Arrangements with Romania The Reserve Bank will consider counter trade proposals from Indian exporters with Romania involving adjustment of value of exports from India against value of imports made into India in terms of a voluntarily entered arrangement between the concerned parties, subject to the condition, among others that the Indian exporter should utilize the funds for import of goods from Romania into India within six months from the date of credit to Escrow Accounts allowed to be opened. PART - 3 C. Operational Guidelines for AD Category - I banks C.1 Citing of Specific Identification Numbers (i) In all applications / correspondence with the Reserve Bank, the specific identification number as available on the GR, PP and SOFTEX forms should invariably be cited. (ii) In the case of declarations made on SDF form, the port....
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....r lost, AD Category - I banks may accept another copy of duplicate GR form duly certified by Customs. Note: At present, GR Forms [to be completed in duplicate for export otherwise than by Post including export of software in physical form i.e. magnetic tapes / discs and paper media] can be obtained by the exporters from the Regional Offices of the Reserve Bank. As part of simplifying the procedures, GR Forms are now made available on-line on the Reserve Bank's website www.rbi.org.in. (Link :- Notification → FEMA → Forms → For Printing of GR Form) Accordingly, the exporters have the option to use the GR Forms available on-line as well. C.3 (B) Mid-Sea Trans-shipment of catch by Deep Sea Fishing Vessels (effective from November 21, 2011). Since deep sea fishing involves continuous sailing outside the territorial limit, trans-shipment of catches takes place in the high sea leading to procedural constraints in regulatory reporting requirement viz. the Declaration of Export in terms of Notification No. FEMA 23/2000-RB dated May 3, 2000. For mid-sea trans-shipment of catches by Indian owned vessels, as per the norms prescribed by the Ministry of agriculture, Governme....
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.... of the shipping bill marked 'Exchange Control Copy' to which form SDF has been appended for being submitted to the AD Category - I banks within 21 days from the date of export. (iii) The AD Category - I banks should accept the Exchange Control (EC) copy of the shipping bill and SDF appended thereto, submitted by the exporter for collection/negotiation of shipping documents. (iv) The manner of disposal of EC copy of Shipping Bill (and form SDF appended thereto) is the same as that for GR forms. The duplicate copy of the form together with a copy of invoice etc. shall be retained by the AD Category - I banks and may not be submitted to the Reserve Bank. In cases where ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA) initially settles the claims of exporters in respect of exports insured with them and subsequently receives the export proceeds from the buyer/buyer's country through the efforts made by them, the share of exporters in the amount so received is disbursed through the bank which had handled the shipping documents. In such cases, ECGC and private insurance companies regulated by IRDA will issue a certificate to the b....
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....rnover is at least Rs. 1000 crore or who files at least 600 SOFTEX forms annually, will be eligible to submit a statement in excel format as per Annexure A, giving all particulars alongwith quadruplicate set of SOFTEX form to the nearest STPI. STPI will then verify the details and decide on a percentage sample check of the documents in details. Software companies will submit all the documents on demand to STPI within 30 days of their advice or any reasonable/extended time at the discretion of the Director, STPI, at the request from the exporter. STPI will thus certify the statement and SOFTEX forms in bulk on the "Top Sheet" regarding the values etc. and will thereafter forward the first copy of the revised SOFTEX format to the concerned Regional Office of RBI, the duplicate copy alongwith bulk statement in excel format to Authorised Dealers for negotiation / collection / settlement, the third copy to the exporter and the last copy will be retained by STPI for its own record. Under the revised procedure, the exporters, however, will have to provide information about all the invoices including the ones lesser than US$25000, in the bulk statement in excel format. [The revised procedu....
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.... sale contract' with overseas buyer provides for acceptance of FCR as a shipping document in lieu of bill of lading. However, the acceptance of such FCR for purchase/discount would purely be the credit decision of the bank concerned who, among others, should satisfy itself about the bona fides of the transaction and the track record of the overseas buyer and the Indian supplier since FCRs are not negotiable documents. It would be advisable for the exporters to ensure due diligence on the overseas buyer, in such cases. C.10 Delay in submission of shipping documents by exporters In cases where exporters present documents pertaining to exports after the prescribed period of 21 days from date of export, AD Category - I banks may handle them without prior approval of the Reserve Bank, provided they are satisfied with the reasons for the delay. C.11 Check-list for Scrutiny of Forms AD Category - I banks may ensure: * The number on the duplicate copy of a GR form presented to them is the same as that of the original which is usually recorded on the Bill of Lading/Shipping Bill and the duplicate has been duly verified and authenticated by appropriate Customs authorities. * The Ship....
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....contracts may provide for payment of penalty for late shipment of goods in conformity with trade practice concerning the commodity. In these cases, while exporters declare to the Customs the full export value based on the contract price, invoices submitted along with shipping documents for negotiation/ collection may reflect a different value arrived at after taking into account the results of analysis of samples or late shipment penalty, as the case may be. * To accept for negotiation or collection the bills for exports by sea or air which fall short of the value declared on GR/SDF forms on account of trade, only if the discount has been declared by the exporter on relative GR/SDF form at the time of shipment and accepted by Customs. C.12 Return of Documents to Exporters The duplicate copies of GR/SDF/PP forms and shipping documents, once submitted to the AD Category - I banks for negotiation, collection, etc., should not ordinarily be returned to exporters, except for rectification of errors and resubmission. C.13 Handing Over Negotiable Copy of Bill of Lading to Master of Vessel/Trade Representative AD Category - I banks may deliver one negotiable copy of the Bill of Ladin....
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....to the Regional Office concerned of the Reserve Bank, on a half-yearly basis, a consolidated statement in Form XOS (Annex 7) giving details of all export bills outstanding beyond six months from the date of export as at the end of June and December every year. The statement should be submitted in triplicate within fifteen days from the close of the relative half-year. C.16 Reduction in Invoice Value on Account of Prepayment of Usance Bills Occasionally, exporters may approach AD Category - I banks for reduction in invoice value on account of cash discount to overseas buyers for prepayment of the usance bills. AD Category - I banks may allow cash discount to the extent of amount of proportionate interest on the unexpired period of usance, calculated at the rate of interest stipulated in the export contract or at the prime rate/LIBOR of the currency of invoice where rate of interest is not stipulated in the contract. C.17 Reduction in Invoice Value in other cases (i) If, after a bill has been negotiated or sent for collection, its amount is to be reduced for any reason, AD Category - I banks may approve such reduction, if satisfied about genuineness of the request, provided: * ....
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....per cent of the export proceeds due during the financial year; and (b) such export bills are not a subject to investigation by Directorate of Enforcement / Central Bureau of Investigation or any other Investigating Agencies. (ii) Exporters dealing with more than one AD Category - I banks can avail of this facility through each AD Category - I bank, i.e., the limit of 10 per cent for self write-off (including reduction in invoice value) and extension of time for realization of export proceeds would be applicable for export bills lodged for realization with that AD Category - I banks. (iii) Exporters operating under a consortium of banks or with multiple banks will also have the option of computing the 10 per cent limit on an aggregate basis with all the banks, provided the lead bank of the consortium or in case of multiple banking, a nodal bank, undertakes to verify the exporters' annual performance on behalf of all the banks. (iv) Within a month from the close of the financial year, exporters should submit a statement (Annex 4), giving details of export proceeds due, realised and not realised to the AD Category - I banks concerned. (v) The AD Category - I banks will be require....
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....ported in XOS statement. However, where extension of time has been granted by the AD Category - I banks, the date up to which extension has been granted may be indicated in the 'Remarks' column. * In cases where the exporter has filed suits abroad against the buyer, extension may be granted irrespective of the amount involved / outstanding. (ii) In cases where an exporter has not been able to realise proceeds of a shipment made within the extended period for reasons beyond his control, but expects to be able to realise proceeds if further extension of the period is allowed to him, as well as in respect of cases not covered under Para (i) above necessary application (in duplicate) should be made to the Regional Office concerned of the Reserve Bank in form ETX through his AD Category - I bank with appropriate documentary evidence. C.22 Write off by AD Category - I banks (i) An exporter who has not been able to realise the outstanding export dues despite best efforts, may either self write off or approach the AD Category - I banks, who had handled the relevant shipping documents, with appropriate supporting documentary evidence with a request for write off of the unrealised porti....
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....nate export incentives (for the cases not covered under A. P. (DIR. Series) Circular No.03 dated July 22, 2010), if any, availed of in respect of the relative shipments. The AD Category - I banks should obtain documents evidencing surrender of export incentives availed of before permitting the relevant bills to be written off. v) In case of self write-off, the exporter should submit to the concerned AD bank, a Chartered Accountant's certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant GR / SDF Nos. to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered. vi) However, the following would not qualify for the "write off" facility : * Exports made to countries with externalization problem i.e. where the overseas buyer has deposited the value of export in local currency but the amount has not been allowed to be repatriated by the central banking authorities of the country. * GR / SDF forms which are under investigation by a....
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....ed, about the fact of non-recovery of export proceeds from the buyer; and * this would not be applicable in self write off cases. The above relaxation is applicable for the exports made with effect from August 27, 2009. The AD Category - I banks are advised not to insist on the surrender of proportionate export incentives, other than under the Duty Drawback Scheme, if availed of, by the exporter under any of the Export Promotion Schemes under FTP 2009-14 , subject to fulfillment of conditions as stated above. The drawback amount has to be recovered even if the claim is settled by the Export Credit Guarantee Corporation of India Limited (ECGC) or the write -off is allowed by the Reserve Bank. C.26 Shipments Lost in Transit When shipments from India for which payment has not been received either by negotiation of bills under letters of credit or otherwise are lost in transit, the AD Category - I banks must ensure that insurance claim is made as soon as the loss is known. In cases where the claim is payable abroad, the AD Category - banks must arrange to collect the full amount of claim due on the lost shipment, through the medium of their overseas branch/correspondent and rele....
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.... only after the entire export proceeds are adjusted / received. * The " set-off" of export receivables against import payments should be in respect of the same overseas buyer and supplier and that consent for "set-off" has been obtained from him. * The export / import transactions with ACU countries should be kept outside the arrangement. * All the relevant documents are submitted to the concerned AD bank who should comply with all the regulatory requirements relating to the transactions. C.28 Agency Commission on Exports (i) AD Category - I banks may allow payment of commission, either by remittance or by deduction from invoice value, on application submitted by the exporter. The remittance on agency commission may be allowed subject to the following conditions: * Amount of commission has been declared on GR/SDF/PP/SOFTEX form and accepted by the Customs authorities or Ministry of Information Technology, Government of India / EPZ authorities as the case may be. In cases where the commission has not been declared on GR/SDF/PP/SOFTEX form, remittance may be allowed after satisfying the reasons adduced by the exporter for not declaring commission on Export Declaration Form,....
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....ls are to be drawn for the shipment provided the relative letter of credit covers the full export value and also permits such drawings and the usance bill mature within twelve months from the date of shipment. (iii) AD Category - I banks should obtain prior approval of the Reserve Bank for issuing guarantees for caution-listed exporters. PART - 4 Annex-1 Foreign Exchange Management (Current Account Transactions) Rules, 2000 Notification No. G.S.R.381(E) dated 3rd May 2000 (as amended from time to time)* : In exercise of the powers conferred by Section 5 and sub-section (1) and clause (a) of sub-section (2) of Section 46 of the Foreign Exchange Management Act, 1999, and in consultation with the Reserve Bank, the Central Government having considered it necessary in the public interest, makes the following rules, namely :-- 1. Short title and commencement.--(1) These rules may be called the Foreign Exchange Management (Current Account Transcation) Rules, 2000); (2) They shall come into effect on the 1st day of June 2000. 2. Definitions. ---In these rules, unless the context otherwise requires : (a) "Act" means the Foreign Exchange Management Act, 1999 (42 of 1999); (b) "Draw....
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....mittance out of lottery winnings. 2. Remittance of income from racing/riding etc. or any other hobby. 3. Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc. 4. Payment of commission on exports made towards equity investment in Joint Ventures/ Wholly Owned Subsidiaries abroad of Indian companies. 5. Remittance of dividend by any company to which the requirement of dividend balancing is applicable. 6. Payment of commission on exports under Rupee State Credit Route, except commission upto 10% of invoice value of exports of tea and tobacco. 7. Payment related to "Call Back Services" of telephones. 8. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme. Schedule II Transactions which require prior approval of the Central Government (see Rule 4) Purpose of Remittance Ministry/Department of Govt. of India whose approval is required 1. Cultural Tours Ministry of Human Resources Development, (Department of Education and Culture) 2. Advertisement in foreign print media for the purposes other than promotion of tourism, foreign investments and international bidding (exceeding USD 10,0....
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....diary or joint venture in India of such foreign company. * exceeding USD 100,000 per year, per recipient, in all other cases. Explanation: For the purpose of this item, a person resident in India on account of his employment or deputation of a specified duration (irrespective of length thereof) or for a specific job or assignment; the duration of which does not exceed three years, is a resident but not permanently resident. 8. Release of foreign exchange, exceeding USD 25,000 to a person, irrespective of period of stay, for business travel, or attending a conference or specialized training or for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up. 9. Release of exchange for meeting expenses for medical treatment abroad exceeding the estimate from the doctor in India or hospital/doctor abroad. 10. Release of exchange for studies abroad exceeding the estimate from the institution abroad or USD 100,000, per academic year, whichever is higher. 11. Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India ex....
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....ies) Circular No.12 August 28, 2002 19. A.P. (DIR Series) Circular No.21 September 16, 2002 20. A.P. (DIR Series) Circular No.28 October 3, 2002 21. A.P. (DIR Series) Circular No.33 October 23, 2002 22. A.P. (DIR Series) Circular No.34 October 31, 2002 23. A.P. (DIR Series) Circular No.41 November 8, 2002 24. A.P. (DIR Series) Circular No.61 December 14, 2002 25. A.P. (DIR Series) Circular No.62 December 17, 2002 26. A.P. (DIR Series) Circular No.78 February 14, 2003 27. A.P. (DIR Series) Circular No.91 April 1, 2003 28. A.P. (DIR Series) Circular No.94 April 26, 2003 29. A.P. (DIR Series) Circular No.100 May 2, 2003 30. A.P. (DIR Series) Circular No.104 May 31, 2003 31. A.P. (DIR Series) Circular No.105 June 16, 2003 32. A.P. (DIR Series) Circular No.8 August 16, 2003 33. A.P. (DIR Series) Circular No.12 August 20, 2003 34. A.P. (DIR Series) Circular No.20 September 23, 2003 35. A.P. (DIR Series) Circular No.22 September 24, 2003 36. A.P. (DIR Series) Circular No.26 October 3, 2003 37. A.P. (DIR Series) Circular No.30 October 21, 2003 38. A.P. (DIR Series) Circular No.32 October 28, 2003 39. A.P. (DIR Series) Circular ....