Whether following remittances by persons other than individuals require prior approval of the Reserve Bank of India under Liberalized Remittance Scheme : Mayank Pvt. Ltd., a Real Estate Company in India want to remit com

CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · June 2025
Whether following remittances by persons other than individuals require prior approval of the Reserve Bank of India under Liberalized Remittance Scheme : Mayank Pvt. Ltd., a Real Estate Company in India want to remit commission of USD 25,000 to an agent outside India for selling a residential flat in India for which he has remitted USD 400,000 in India

Answer & Explanation:

Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or five percent of the inward remittance whichever is more require prior approval of Reserve Bank of India. In this case, 5% of inward remittance is USD 20000 which is within the limit. So, no prior approval of Reserve Bank of India is required.

Topics: Foreign Exchange Management Act (FEMA)

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