BOOKS OF ACCOUNT OF COMPANY OBLIGATION OF THE COMPANY TO MAINTAIN BOOKS OF ACCOUNT Provisions relating to accounts of companies are dealt with under Chapter IX (sections 128 to 138) of the Companies Act, 2013 (hereinafter referred to as ‘the Act’/’the 2013 Act’). Section 128(1)/(2) of the Act deals with obligations of company to maintain… Read More »
Appeal under FEMA FEMA provides for appeal against order of Adjudicating Authority. If the adjudicating authority is Assistant Director of Enforcement or Deputy Director of Enforcement, appeal will lie with Special Director (Appeals). Further appeal lies with ‘Appellate Tribunal for Foreign Exchange’. If the adjudicating authority is senior to Deputy/Assistant Director, appeal lies directly with… Read More »
Adjudication under FEMA Procedure for adjudication The procedure for adjudication and appeal has been specified in Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000. Holding of Enquiry – Adjudicating Authority appointed by Central Government will issue a show cause notice to person who is alleged to have committed the contravention, indicating nature of contravention.… Read More »
Penalty under FEMA Penalty that can be imposed under FEMA The penalty can be upto thrice the sum involved in such contravention where the amount is quantifiable. If the amount is not quantifiable, penalty upto Rs. two lakhs can be imposed. If contravention is of continuing nature, further penalty upto Rs. 5,000 per day during… Read More »
Act done in good faith A thing is deemed to have been done in good faith where it is in fact done honestly, whether it is done negligently or not [section 3(22) of the General Clauses Act]. A person cannot be said acting in good faith where he has a suspicion that there is something… Read More »
Natural justice For controlling abuse of power, the Courts in their various landmark judgments have held that no decision which prejudicially affects a person can be taken without giving him a prior opportunity of hearing. Courts have now obliterated distinction between a quasi-judicial function and an administrative function. If the urgency and the nature of… Read More »
Questions and Answers For Members 1. What is UAN ? UAN stands for Universal Account Number. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number.… Read More »
Separate PIS sub-account by NRI NRI may open a separate sub-account of NRE/NRO account with authorized dealers for routing receipt and payment of transactions relating to purchase and sale of shares and convertible debentures under NRE (PIS) account for investment made on repatriation basis and NRO(PIS) account for investment made on non-repatriation basis. Only permitted… Read More »
Non-Resident Ordinary Rupee (NRO) Account Statutory provisions are contained in schedule 3 of Foreign Exchange Management (Deposit) Regulations, 2000. RBI has issued Master Circular No. 2/2014-15 dated 1-7-2014 on ‘Non-Resident Ordinary Rupee (NRO) Account’ [earlier Master Circular No. 2/2013-14 dated 1-7-2013], consolidating all instructions relating to NRO account. RBI has issued master circular DBOD No.… Read More »
Non-Resident (External) Rupee Account Scheme (NRE) The amount (principal as well as interest) is freely repatriable. Transfer from/to FCNR(B) account is freely permitted. Statutory provisions are contained in schedule 1 of Foreign Exchange Management (Deposit) Regulations, 2000. The provisions are summarised below— Form of account – The accounts may be maintained in any form, e.g.… Read More »