FEMA

[prashant arya]

Hello Friends , 

I need your help on one of my client/ This co is wholly owned subsdiary in India. The CO was incorporated in 2011 and since then they have yet to start the business. The main object of this company is to provide complete services for setting up Steel / Cement Plants in India on EPC basis.

Since they do not have any business at present, they are facing finance problem here in India. To overcome this problem, they have asked their parent company / group entities to remit some amount in order to meet day to day requirement of the co in India. In the previous year they have received approx 200000 USD.

Presently the amount so received is shown as advance against expenses. 

The ECB Guidelines does not permit end use of ECB for working capital or general purpose expenses.

May I request you to kindly help me to find out some solution in order to regularize the transaction and to avail the ECB in future till they commence business in India.

--
Regards

CA Prashant Arya

Mob: 9818070049

[Niraj Kumar Gupta]

Sir, 

Have you got the answer of your query?

I had read the updated guidelines but unable to find the solution to utilize the money held in bank account.  

I think bank will provide the Cash Credit / Over Draft facilities for working capital requirement,

Thanks & Regards,

Niraj Kumar Gupta 

9971985594