TaxTMI 
TaxTMI 
Payment from EEFC Account-
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....ayment from EEFC Account-<br> Query (Issue) Started By: - Ramaswamy S Dated:- 4-4-2018 Last Reply Date:- 31-8-2018 FEMA<br>Got 5 Replies<br>FEMA<br>RBI circular allows payment from EEFC account to EOU/EHTP/STP in foreign currency. The question is whether payment received by an 2nd EOU from another 1st EOU (in case of Inter unit transfers as per para 6.13 of FTP) from the EEFC account of the latt....
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....er is considered as FE earnings in the hands of the former. The FE is earned by the 1st EOU in its EEFC account. Payment is made by the 1st EOU to 2nd EOU from the EEFC account. Whether such earnings are considered as FE in both EEFC account. Thanks and Regards S.Ramaswamy Reply By YAGAY AND SUN: The Reply: Whether both the units are of the same company or not? Reply By Ramaswamy S: The Re....
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....ply: Two unconnected (principal to principal) business entities - supplier and customer Reply By YAGAY and SUN: The Reply: Please check para 6.04 of the FTP and para 6.10 of the HBP (mid term review) about the Net Foreign Exchange (NFE) Earnings. There is no mentioned about EEFC Account. However you may get it clarified from Development Commissioner. Reply By DR.MARIAPPAN GOVINDARAJAN: The Re....
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....ply: Yes, there is no mention about EEFC in para 6.13 of FTP. The suggestion given by Shri Yagay may be followed. Reply By Ramaswamy S: The Reply: EEFC is as per RBI Master Circular. Its not regarding FTP. FTP talks about FE earnings. The question is whether transfer (settlement of payment) of FE from EEFC Account of EOU to another EOU is considered earnings of FE for the supplier EOU when the....
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.... FE is actually earned by the First EOU (customer EOU). Only if the settlement in FC (by the Customer EOU) is shown as a outflow of FE, the second EOU ( supplier EOU) to be considered as FE earnings. Else two units claiming FE earnings within the country. EOU unlike SEZ is considered within the Indian territory for tax purpose. Is it correct? Regards S.Ramaswamy<br> Discussion Forum - Knowled....
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....ge Sharing ....