02 August 2009

keshav jetsey: New Foreign Remmitances Procedure

Are the new foreign remittance procedures , also applicable for payment for raw materials, foreign exhibitions,fairs, etc.?

3 comments:

  1. Are you speaking about 195 remittance? If yes, then ofcourse you need to follow it for all kind of remittances other than import of goods (where form A1 is required). Apart from that for trade fairs you need GR approval as usual. caviwshalshah@gmail.com

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  2. I do not agree with Mr Vishal. Section 195 applies to ANY fgn remitttance and hence Raw Material( RM)payments are also included.The prior procedure - prescribed by RBI & CBEC had amply clarified this that for RM too, CA certificate is required.I can provide clarification of CBEC in this regard. This is bcoz if there is PE of payee ,some income will accrue in India too. Also refer column 13 of Form 15CA , which will amply clarify this.

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  3. Circulay no. 4 dated 29-06-2009 issued by the Cbdt speaks clearly about all remittances to Non-resident [individual or company] except for personal remittances, new procedure is applicable.

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