Mr. Ravi approached CA. Abhishek, to seek expert advice and to understand the regulatory requirements and permissible procedures under FEMA laws to…

8 CA Abhishek would advise Mr. Ravi as per the current regulatory framework of FEMA and the guidelines issued by the Reserve Bank of India. Under provisions of Section 5 of the Foreign Exchange Management Act, 1999, certain Rules have been made for drawal of Foreign Exchange for Current Account transactions. As per these Rules, Foreign Exchange for some of the Current Account transactions is prohibited. As regards some other Current Account transactions, Foreign Exchange can be drawn with prior permission of the Central Government while in case of some Current Account transactions, prior permission of Reserve Bank of India is required. In respect of remittance out of lottery winnings, such remittance is prohibited and the same is included in First Schedule to the Foreign Exchange Management (Current Account Transactions) Rules, 2000. Hence, Mr. Ravi cannot withdraw Foreign Exchange for this purpose. Further, Foreign Exchange for meeting expenses of cultural tour can be withdrawn by any person after obtaining permission from Government of India, Ministry of Human Resources Development, (Department of Education and Culture) as prescribed in Second Schedule to the Foreign Exchange Management (Current Account Transactions) Rules, 2000. Hence, in respect of cultural troupe, Mr. Ravi can withdraw the Foreign Exchange only after obtaining such permission. In both above cases, where remittance of Foreign Exchange is allowed, either by general or specific permission, the remitter has to obtain the Foreign Exchange from an Authorised Person as defined in Section 2(c) read with section 10 of the Foreign Exchange Management Act, 1999.