Offices abroad remittances RBI provides greater flexibility

By Vijay Kumar

(i) Initial Expenses - remittance up to fifteen per cent of the average annual sales/income or turnover during the last two financial years or up to twenty-five per cent of the net worth, whichever is higher, to be allowed

(ii) Recurring Expenses - remittance up to ten per cent of the average annual sales/income or turnover during the last two financial years.

(iii) Acquisition of Immovable Property - a company incorporated in India having overseas offices require prior permission of the Reserve Bank to acquire immovable property outside India for its business and for residential purpose of its staff, subject to certain terms and conditions. Now AD banks to allow remittances by a company incorporated in India having overseas offices for initial and recurring expenses, to acquire immovable property outside India for its business and for residential purpose of its staff.

A.P . (DIR Series) CIRCULAR NO. 18/RBI., Dated: December 4, 2006