Corporates have to go through a cumbersome process when it comes to cross-border transactions. Foreign Exchange Management Act, 1999 (FEMA) was introduced to ensure smooth external transactions, maintaining a healthy foreign exchange market, and encourage the importance of the balance of payments.
Penalties for contraventions under FEMA are per se monetary in nature. If any person contravenes any provisions, rules or regulations, the penalty imposed can be up to 3 times of the sum involved in contravention; and if the sum of contravention is not ascertainable, penalty can be up to ₹ 200,000. Further, where the violation is a continuing one, an additional penalty of Rs 5,000 per day of contravention can be imposed.
At The Tax Experts DMCC, we provide services with regards to mandatory compliances under FEMA which are as follows:
• Annual Return on Foreign Liabilities and Assets.
• Annual Performance Report
• External Commercial Borrowings (ECB)
• Single Master Form (w.e.f.30.06.2018)
• Advance Remittance Form
• Form FC- TRS
• Form FC- GPR
• Form ODI
• Consultancy related to the above compliances or other provisions of the law respectively.