A.P.(DIR Series)(2003-04) Circular No. 86, dated 17-4-2004
Current
Account Transactions - Remittance for maintenance of close relatives abroad -
Requests of Indian Nationals on deputation to India from Overseas Companies
Attention
of Authorised Dealers is invited to item 7 of Schedule III of Government of
India Notification No. GSR. 381(E) dated May 3, 2000 as amended by the
Notification No. S.O.301(E) dated March 30, 2001 in terms of which, foreign
nationals (other than Pakistani nationals) who are resident but not permanently
resident in India may remit net salary (after deduction of taxes, contribution
to provident fund and other deductions) for maintenance of close relatives
abroad. At present similar requests in respect of Indian nationals employed by
overseas companies, on deputation to India, are required to be referred to the
Reserve Bank.
2. On a
review, it has been decided to extend the same facility of remittance of salary
already available to foreign nationals (other than Pakistani nationals) to
Indian nationals employed by an overseas company, on deputation to India.
Accordingly, it will be in order for the Authorised Dealers to allow remittance
of net salary (after deductions of taxes, contribution to provident fund and
other deductions) of a citizen of India, who is on deputation to the office or
branch or subsidiary or joint venture in India of such overseas company, for
the maintenance of close relatives residing abroad. Government of India issued
Notification No. GSR 397(E) dated May 1, 2003 in this regard.
3. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
4. The
directives contained in this circular have been issued under sections 10(4) and
11(1) of FEMA, 1999 (42 of 1999).