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TMI BlogMaster Direction - Miscellaneous (Updated as on November 12, 2018)X X X X Extracts X X X X X X X X Extracts X X X X ..... modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/ constituents with a view to implementing the regulations framed. 3. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. The Master Direction issued herewith shall be amended suitably simultaneously. Yours faithfully, ( Ajay Kumar Misra ) Chief General Manager in Charge Master Direction - Miscellaneous 1) Remittances to non-residents Deduction of Tax at Source On the Central Board of Direct Taxes (CBDT) revising the existing instructions to be followed while allowing remittances to the non-residents, Reserve Bank of India has clarified that it will not be issuing instructions under Foreign Exchange Management Act, 1999 (FEMA), clarifying tax issues. The Authorised Dealers are required to comply with the requirement of the tax laws, as applicable. 2) Repatriation of income and sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r(s) in 3 all types of resident bank accounts on Either or Survivor basis subject to the following conditions: a. Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable. b. Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative shall not be eligible for credit to this account. c. The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself. d. Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders. e. Where due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO) account as per the extant regulations. f. Onus will be on the non-resident account holder to keep AD bank informed to get the account categorized as NRO account and all such regulations as applicable to NRO account shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral or specific permission granted under the relevant Regulations. (c) Indian companies or their AD Category I banks using or establishing structures which contravene the above shall render themselves liable for penal action as prescribed under FEMA, 1999. 6) Constitution of Special Investigating Team sharing of information In pursuance of the Hon ble Supreme Court Judgment dated July 4, 2011, Government of India constituted a Special Investigation Team (SIT) under the Chairmanship of Hon ble Justice M.B. Shah. In this regard, the Hon ble Supreme Court has directed that: All organisations, agencies, departments and agents of the State, whether at the level of the Union of India, or the State Government, including but not limited to all statutorily formed individual bodies, and other constitutional bodies extend all the cooperation necessary for the functioning of the Special Investigation Team. The Union of India and where needed the State Government will facilitate the conduct of the investigations, in their fullest measures, by the Special Investigation Team and functioning, by extending all necessary financial, material, legal, diplomatic and intelligence r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Centre) Regulations, a financial institution or a branch of a financial institution set up in the IFSC and permitted / recognised as such by the Government or a Regulatory Authority will be treated as person resident outside India. Therefore, their transaction with a person resident in India will be treated as a transaction between a resident and non- resident and shall be subject to the provisions of Foreign Exchange Management Act, 1999 and the Rules/ Regulations/ Directions issued thereunder. The financial transaction in this context shall mean making or receiving payment, drawing, issuing or negotiating any bills of exchange or promissory note, transferring any security or acknowledging any debt. Similarly, financial service shall mean any activity which a financial institution is permitted to carry on by the respective Act of the Parliament or Government of India or any Regulatory Authority empowered to regulate the concerned financial institution. 9) Regularisation of assets held abroad by a person resident in India under Foreign Exchange Management Act, 1999 To effectively deal with assets held abroad by persons resident in India in violation of the Foreign Exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be subject to the limit prescribed under the Liberalised Remittance Scheme (LRS). 4. Only current account transactions, in the nature of personal remittances, shall be permitted under this model. The transactions permitted are as follows: a. Private Visits, b. Remittance by tour operators / travel agents to overseas agents / principals / hotels, c. Business Travel, d. Fee for participation in global conferences and specialized training, e. Remittance for participation in international events / competitions (towards training, sponsorship and prize money). f. Film shooting, g. Medical Treatment abroad, h. Disbursement of crew wages, i. Overseas Education, j. Remittance under educational tie up arrangements with universities abroad, k. Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL etc., l. Employment and processing, assessment fees for overseas job applications, m. Emigration and Emigration Consultancy Fees, n. Skills/ credential assessment fees for intending migrants, o. Visa fees, p. Processing fees for registration of documents as required by the Portuguese/ other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Education and Awareness Fund) Scheme 136 28.05.2014 8 Operational guidelines on International Financial Services Centre (IFSC) 92 31.03.2015 9 Regularisation of assets held abroad by a person resident in India under Foreign Exchange Management Act, 1999 18 30.09.2015 ------ 1 FEMA 5/2000-RB dated May 03, 2000 has been replaced with FEMA 5(R)/2016-RB dated April 01, 2016. 2 Section 6 of the Companies Act, 1956 has been replaced with Section 2(77) of the Companies Act, 2013 3 Resident savings account replaced with all types of resident bank accounts as the instructions are applicable to all types of resident accounts. 4 FEMA 5/2000-RB dated May 03, 2000 has been replaced with FEMA 5(R)/2016-RB dated April 01, 2016. 5 Section 6 of the Companies Act, 1956 has been replaced with Section 2(77) of the Companies Act, 2013 6 Inserted with effect from 07.09.2018 - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxm ..... 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