Sale proceeds received and spent in foreign bank account, FEMA

[chandrashekar Mahadevappa]

Hi All,

Need your guidance on the below issue:

A software company has a branch office in USA for sales and marketing. The USA branch office holds a bank account for payment of salaries and other expenses.

The company received payments from customers in to the foreign bank account. The company used a small portion of such receipts towards salaries and other expenses in USA.

Please let me know the implications under FEMA since the export proceeds were used in USA without bringing the money in to India.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

Your query is to be elaborative still more. Whether the customers are Indian customers. Whether the services of foreign branch office are rendering in India?