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Santosh (Manager)     26 August 2013

Fema trading

Hi,

Consider a situation:
1) Party A is recipient of money (in rupees) 2) aware that the original source of payment is from trading in foreign country (USDollar) and 3) is engaged into an agreement with party B 4) the party B is going to covert the USD to Rupees 5) make the payment to party A by cutting TDS.

In this situation, if party B is somehow violating FEMA rule, does the party A will also be implicated under FEMA rule ?

Could you please answer this query. I really appreciate your advice.


Thanks.



 1 Replies

Advocate Sastry (Advocate)     26 August 2013

Resident Indians cannot trade in foreign currencies  and FEMA guidelines do not permit trading in Foreign Exchange in Domestic/international market... Please do not do... I attach copy of RBI Press release in this regard...


Attached File : 287688656 rbi press release.pdf downloaded: 47 times

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