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Jayanta Bandyopadhyay   19 April 2023

Consultancy service for foreign company

My relative has received a consultancy offer from St Petersburg. They will pay Fees every month. What rules apply for such forex transaction? If they stop making remittance, what recourse is available in India.



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 2 Replies

RAKESH ISHI   19 April 2023

If your relative is receiving consultancy fees from St. Petersburg, Russia, they would need to comply with the Foreign Exchange Management Act (FEMA) regulations in India. According to FEMA, any foreign exchange transaction involving a person resident in India is regulated by the Reserve Bank of India (RBI).

Your relative would need to approach a bank authorized by the RBI to conduct foreign exchange transactions and open a foreign currency account for receiving the consultancy fees. They would also need to provide the necessary documents, such as the consultancy agreement, their passport, and other relevant documents to the bank.

Legal Upanishad   19 April 2023

The Foreign Exchange Management Act, 1999 is a replacement for the Foreign Exchange Regulations Act, 1973. The FEMA, 1999 was enforced on 1st June 2000. It has a total of 7 chapters and 49 sections.

There FEMA, 1999 was introduced due to the change in prevailing conditions and changes in the environment. It was passed with the motive of easing the governmental control over the foreign exchange of India. The head office of FEMA is located in New Delhi and is headed by the director of foreign exchange.

All About the Foreign Exchange Management Act, 1999 (legalupanishad.com)

The article deals with the provisions of the Foreign Exchange Management Act, 1999 wherein the various rules and regulations for foreign exchange and security have been discussed.


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