Podcast
Questions and Answers
What is the maximum donation that requires prior approval if it exceeds one percent of foreign exchange earnings over the last three years?
What is the maximum donation that requires prior approval if it exceeds one percent of foreign exchange earnings over the last three years?
- USD 1,000,000
- USD 5,000,000 (correct)
- USD 10,000,000
- USD 15,000,000
What is the threshold for commissions to agents abroad for property sales that necessitates prior approval?
What is the threshold for commissions to agents abroad for property sales that necessitates prior approval?
- USD 20,000
- USD 10,000
- USD 25,000 (correct)
- USD 50,000
What is the maximum remittance allowed per project for consultancy services in infrastructure projects without prior approval?
What is the maximum remittance allowed per project for consultancy services in infrastructure projects without prior approval?
- USD 10,000,000 (correct)
- USD 1,000,000
- USD 5,000,000
- USD 15,000,000
What is the remittance threshold for consultancy services from outside India that triggers the need for prior approval?
What is the remittance threshold for consultancy services from outside India that triggers the need for prior approval?
What is the condition that requires prior approval for reimbursement of preincorporation expenses?
What is the condition that requires prior approval for reimbursement of preincorporation expenses?
Flashcards are hidden until you start studying
Study Notes
Remittances Requiring Approval of the Reserve Bank of India
- Donations exceeding one percent of foreign exchange earnings over the past three financial years or USD 5,000,000 need Reserve Bank approval.
- Applicable activities for these donations include:
- Establishing Chairs in reputable educational institutes.
- Contributing to educational institute-promoted funds (not investment funds).
- Supporting technical institutions, bodies, or associations relevant to the donor company’s field.
Commission Payments
- Commission payments made to agents abroad for selling residential flats or commercial plots in India require approval if they exceed:
- USD 25,000 per transaction, or
- Five percent of the inward remittance, whichever amount is higher.
Consultancy Service Remittances
- Remittances for consultancy services also require approval when exceeding:
- USD 10,000,000 per project for infrastructure consultancy services.
- USD 1,000,000 per project for other types of consultancy services sourced from outside India.
Reimbursement of Expenses
- Reimbursement of pre-incorporation expenses by an entity in India requires approval if it exceeds:
- Five percent of the investment brought into India, or
- USD 100,000, whichever sum is higher.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
