Executive Summary:
This notification, G.S.R. 803(E), issued by the Reserve Bank of India, amends the Foreign Exchange Management (Remittance of Assets) Regulations, 2000. The amendment, effective from the date of publication in the Official Gazette, concerns the remittance of assets and introduces changes regarding applicable taxes in India. It was issued on October 31, 2014.
Key Points / Main Content:
Amendment Regulations, 2014:
* These regulations may be called the Foreign Exchange Management (Remittance of Assets Amendment) Regulations, 2014.
* They shall come into force from the date of their publication in the Official Gazette.
Amendments to Regulation 4:
* Subregulation 2, clause (iii)(i): Remittance of up to US$1,000,000 per financial year is subject to applicable taxes in India.
* Subregulation 2, clause (iii)(a): The word "and" shall be deleted.
* Subregulation 2, clause (iii)(b): The existing subclause (b) shall be deleted.
* Subregulation 3(i): NRI/PIO remittances up to US$1,000,000 per financial year are subject to applicable taxes in India.
* Subregulation 3(i), clause (i)(a): The word "and" shall be deleted.
* Subregulation 3(i), clause (i)(b): The existing subclause (b) shall be deleted.
* Subregulation 3(i), clause (ii)(a): The word "and" shall be deleted.
* Subregulation 3(i), clause (ii)(b): The existing subclause (b) shall be deleted.
* Subregulation 4(i), clause (ii)(a): This subclause shall be deleted.
* Subregulation 4(i): Payment of applicable taxes in India, if any.
Amendments to Regulation 7:
* Subregulation 1: The existing clause C shall be deleted.
* Subregulation 2: The authorized dealer may permit remittance, subject to Reserve Bank directions and applicable taxes in India.
Impact Analysis:
Authorized Dealers:
* Impact: Must adhere to the amended regulations when processing remittance applications, including ensuring compliance with tax payment requirements.
* Action Required: Update internal procedures and systems to reflect the new regulations and ensure staff are aware of the changes.
Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs):
* Impact: Remittances are now explicitly subject to applicable taxes in India.
* Action Required: Ensure compliance with Indian tax laws when remitting assets and be prepared to provide necessary documentation.
Individuals remitting assets:
* Impact: Remittances are now explicitly subject to applicable taxes in India.
* Action Required: Ensure compliance with Indian tax laws when remitting assets and be prepared to provide necessary documentation.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's foreign exchange reserves.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Remittance of Assets Regulations, 2000: Regulations issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999, governing the remittance of assets from India.
G.S.R. 803E: A notification number related to the Foreign Exchange Management Remittance of Assets Amendment Regulations, 2014.
Foreign Exchange Management Remittance of Assets Amendment Regulations, 2014: Amendment to the Foreign Exchange Management Remittance of Assets Regulations, 2000.
New Delhi: The capital of India, where the notification was published.
Mumbai: City in Maharashtra, location of the Central Office of the Reserve Bank of India.
D. SRINIVASAN: Chief General Manager of Reserve Bank of India.
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4514 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
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f. 15 फरवर9 2008 के सा.का.(cid:29)न. स.ं 90(अ),
g. 23 नवंबर 2009 के सा.का.(cid:29)न. स.ं 837(अ),
h. 9 अगQत 2011 के सा.का.(cid:29)न. स.ं 199(अ).
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 31st October, 2014
Foreign Exchange Management (Remittance of Assets) (Amendment) Regulations, 2014
G.S.R. 803(E).—In exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act,
1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendment in the Foreign Exchange
Management (Remittance of Assets) Regulations, 2000 (Notification No. FEMA. 13/ 2000-RB dated May 3, 2000),
namely—
2. Short title and commencement
(i) These Regulations may be called the Foreign Exchange Management (Remittance of Assets) (Amendment)
Regulations, 2014.
(ii) They shall come into force from the date of their publication in the Official Gazette.
3. Amendment of the regulations
In the Foreign Exchange Management (Remittance of Assets) Regulations, 2000 (Notification No. FEMA 13/2000-RB
dated May 3, 2000),
A. In regulation 4,—
a) in sub-regulation (2), in clause (iii),—
(i) for the words and figures “may remit an amount, not exceeding US$ 1, 000, 000 (US Dollar One Million Only) per
financial year on production of,”, the words and figures “may remit an amount, not exceeding US$ 1, 000, 000 (US
Dollar One Million Only) per financial year subject to payment of applicable taxes in India, if any, on production of,”
shall be substituted.
(ii) in sub-clause (a), the word “and” shall be deleted.
(iii) the existing sub-clause (b) shall be deleted.
b) in sub- regulation (3),—
(i) after the words and figures, “A Non-Resident Indian (NRI) / Person of Indian Origin (PIO) may remit an amount not
exceeding US $ 1, 000, 000 (US Dollar One Million Only) per financial year”, the words, “ subject to payment of
applicable taxes in India, if any,” shall be inserted.
(ii) in clause (i), in sub-clause (a), the word “and” shall be deleted.
(iii) in clause (i), the existing sub-clause (b) shall be deleted.
(iv) in clause (ii), in sub-clause (a), the word “and” shall be deleted.
(v) in clause (ii), the existing sub-clause (b) shall be deleted.
c) in sub-regulation (4),—
(i) in clause (ii), sub-clause (a) shall be deleted.
(ii) after clause (ii), the following shall be added namely,—
“(iii) payment of applicable taxes in India, if any.”4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
B. In regulation 7,—
a) in sub-regulation (1), the existing clause (C) shall be deleted.
b) the existing sub-regulation (2), shall be substituted by the following namely,—
“(2) On consideration of the application made under sub-regulation (1), the authorized dealer concerned may permit the
remittance subject to the directions issued by the Reserve Bank in this regard, from time to time and payment of
applicable taxes in India, if any.”
[No. FEMA. 324/2014-RB]
C. D. SRINIVASAN, Chief General Manager
Foot Note:
The Principal Regulations were published in the Official Gazette vide No. G.S.R. 396 (E) dated May 5, 2000 in Part II,
Section 3, Sub-section (i) and subsequently amended vide:—
a. No. G.S.R. 576 (E) dated August 19, 2002;
b. No. G.S.R. 630 (E) dated August 4, 2003;
c. No. G.S.R. 699 (E) dated September 1, 2003;
d. No. G.S.R. 493 (E) dated August 4, 2004;
e. No. G.S.R. 400 (E) dated May 30, 2007;
f. No. G.S.R. 90 (E) dated February 15, 2008;
g. No. G.S.R. 837 (E) dated November 23, 2009
h. No. G.S.R. 199 (E) dated August 9, 2011.
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.