ABC Private Limited is a project engineering, procurement and construction company. The company has bagged a contract from the Government of State…
CA Intermediate · Corporate and Other Laws · MTP · January 2025
ABC Private Limited is a project engineering, procurement and construction company. The company has bagged a contract from the Government of State of Kerala for construction of Water Dam. The company has involved a project consultancy firm situated in Australia for preparing techno-economic feasibility report to enable it to start construction work of dam. The company had paid USD 7,000,000 to vendor of Australia. The company also availed the services of Software Company situated in Denmark for the migration of its accounting software from SAP to Oracle for which the company had paid USD 2,000,000 to the software company. Considering the provisions of Foreign Exchange Management Act, 1999, which of the below mentioned statement is correct:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
The company can make payment of USD 7,000,000 without any approval and USD 2,000,000 after obtaining prior approval of the Reserve Bank of India (RBI).
Topics: The Foreign Exchange Management Act, 1999, Registration of Charges
Related Questions in this Topic
- 14. Which of the following statements is/are correct with respect to the effect of repeal of an enactment under Section ...
- 12. Radiant Pharma Limited is a public company. Three of its major shareholders Mr. Kabir, Ms. Leela, and Sunrise Holdin...
- Ms. Rashida Qureshi is an Indian national. The following events occurred in sequence: 5th April, 2025: Ms. Rashida dep...
- Apex Green Energy LLP, engaged in the business of manufacturing solar-powered equipment, has been facing severe liquidit...
- Indian real estate market has long been a cornerstone of nation's economic growth attracting not only local demand but i...