Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2009 - G.S.R. 349(E) - Foreign Exchange Management

Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2009 MINISTRY OF FINANCE (Department of Economic Affairs NOTIFICATION New Delhi , the 22nd May, 2009 G.S.R. 349(E). - In exercise of the powers conferred by sub-section (1) and clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in consultation with the Reserve Bank, the Central Government, having considered it necessary in the public interest, hereby makes the following further amendments in the Foreign Exchange Management (Current Account Transactions) Rules, 2000 , namely:- 1. Short title and commencement - (1) These rules may be called the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2009 (2) They shall come into force on such date as specified in the provisions of these rules. 2. In the Foreign Exchange Management (Current Account Transactions) Rules, 2000 , in Schedule III, - (1) (i) for item numbers 2 and 3 and the entries relating thereto, the following item numbers and the entries shall be substituted, namely:- "2. Release of exchange exceeding US$ 10,000 or its equivalent in one financial year for one or more private visits to any country (except Nepal and Bhutan). 3. Gift remittance exceeding US$ 5,000 per financial year per remitter or donor other than resident individual;" (ii) the amendments made to item numbers 2 and 3 shall be deemed to have come into force on the 20th December, 2006. (2) for item 4 and the entries relating thereto, the following item number and the entries shall be substituted, namely:- "4. (i) Donation exceeding US$ 5,000 per financial year per remitter or donor other than resident individual; (ii) Donations by corporate, exceeding one per cent of their foreign exchange earnings during the previous three financial years or US$ 5,000,000, whichever is less, for,- (a) creation of Chairs in reputed educational institutes; (b) to funds (not being an investment fund) promoted by educational institutes; and (c) to a technical institution or body or association in the field of activity of the donor company Explanation : For the purposes of these item numbers 3 and 4, remittance of gift and donation by resident individuals are subsumed under the Liberalised Remittance Scheme." (3) for item number 15 and the entries relating thereto, the following item number and the entries shall be substituted, namely:- "15. Remittances exceeding US$ 10,000,000 per project, for any consultancy services in respect of infrastructure projects and US$ 1,000,000 per project for other consultancy services procured from outside India. Explanation : For the purposes of this item number 'infrastructure project' is those related to - (i) Power, (ii) Telecommunication, (iii Railways, (iv) Roads including bridges, (v) Sea port and airport, (vi) Industrial parks, and (vii) Urban infrastructure (water supply, sanitation and sewage)". (4) after item number 16 and the entries relating thereto, the following item number and the entries shall be inserted, namely:- "17 Remittances exceeding five per cent of the investment brought into India or US$ 1,00,000 whichever is higher, by an entity in India by way of reimbursement of pre-incorporation expenses." (5) the amendments made to item numbers 4, 15 and 17 shall be deemed to have come into force on the 3 April, 2007. [F.No.1/1/EC/2004] Dr. K. P. KRISHNAN, Jt. Secy. EXPLANATORY MEMORANDUM It is clarified that no person shall be adversely affected as a result of retrospective effect being given to such rules The principal rules were published in the Gazette of India, Extraordinary Part II, section 3(i) vide number G.S.R. 381(E), dated the 3rd May, 2000 and subsequently amended vide:- (a) G.S.R. 663(E), dated the 9th August, 2000, (b) S.O. 301(E), dated the 3 March 2001, (c) G.S.R. 442, dated the 22nd October, 2002, (d) G.S.R 831 (E), dated the 17th December, 2002, (e) G.S.R 33(E), dated the 15th January, 2003, (f) G.S.R. 397(E), dated the 1st May, 2003, (g) G.S.R. 731 (E), dated the 5th September. 2003, (h) G.S.R. 849 (E), dated the 27th October, 2003, (i) G.S.R. 608(E), dated the 13th September, 2004, (j) G.S.R. 512(E), dated the 27th July, 2005 and (k) G.S.R. 412(E), dated the 10th July, 2006.