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Questionaries under FEMA act.

(Querist) 12 June 2008 This query is : Resolved 
Thanks for my earlier question's Reply,

Can anybody Provide me the questionary under FEMA act for legal complaince audit
Guest (Expert) 12 June 2008
Documentaion for outward Remittance
if payment is in respect of import then below document is required to make the payment:-
-Request Letter including
-fema declaration u/s 10(6) of FEMA
-exchange control copy of bill of entry (essential if amount of remittance is more than usd 1,00,000/-)(as per-Import Master Circular.)
-Import licence exchange control copy and if good is covered under open general licence then open general licence declaration
-A certificate of import export code.
-invoice
-bill of lading
- form A1
- other related document if any


If remittance is in respect of service then
-request letter
-fema declaration
-form A-2
-invoice if there is any
-annexure A & B (depened on type of payment)
-agreement copy (depend on type of payment)
ceiling is as under
-private visits = usd 10,000/- p.a.
-Gift remittance = usd 5,000/-p.a.
-Donation = usd 5,000/- p.a.
-going abroad for employment = usd 100,000/-
-emigration = usd 100,000/-
-disposal salary for remittor for maintance of close relative subject to usd 100,000/-p.a. and per recipient
-business travel, or attending a conference or specialised
training or for maintenance expenses of a patient going abroad for medical
treatment or check-up abroad, or for accompanying as attendant to a patient
going abroad for medical treatment/check-up=usd25000/-
-studies abroad = usd 1,00,000/- per academic year
-Commission, per transaction, to agents abroad for sale of residential flats or
commercial plots in India exceeding USD 25,000 or 5% of the inward remittance
-CONSULTANCY SERVICE = USD 10,00,000/-
-reimbursement of pre-incorporation expenses=USD 1,00,000/-

Following checklist
1) to open eefc ,current & capital under fema act
2) inward & outward remittance of foreign exchange
3) ceilings on f.e
4) format report on the above

Hope this will lead you to objective. Without knowing what kind of organisation you are going to audit, it is difficult to provide such details.

Chandan Garg (Querist) 12 June 2008
i have to audit one spongeiron and steel manufacturing company kindly help
Guest (Expert) 12 June 2008
Take a note of all the foreign inward remitannce and outward remitttances, check whether all are through proper Banking channels. Check for the prior permissions and reporting. Importantly ask for the notices or corresppondance from the FEMA people. That can throw light on the mistakes committed earlier and you can check whether they have rectified.

If there is ECB then check whether the RBI has been informed about the creidt of interest and other debit r credit entries.

Go through the Act and refresh yourself with Mandatory , penal and prosecution provisions. Check their compliance with the records of the company.
That should be fine.
Chandan Garg (Querist) 12 June 2008
thanks sir
Chandan Garg (Querist) 21 August 2008
Thanks everybody
Chandan Garg (Querist) 21 August 2008


if some body have some more suggestion are welcom


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