Discuss the transactions which are prohibited under "Liberalised Remittance Scheme".
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2020
Discuss the transactions which are prohibited under "Liberalised Remittance Scheme".
Answer & Explanation:
Transactions which are prohibited under Liberalised Remittance Scheme (LRS) are as under: Remittance out of lottery winnings. Remittance of income from racing/riding etc. or any other hobby. Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc. Payment of commission on exports made towards equity investment in Joint Ventures/Wholly Owned Subsidiaries abroad of Indian companies. Remittance of dividend by any company to which the requirement of dividend balancing is applicable. Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco. Payment related to "Call Back Services" of telephones. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme.
Topics: Foreign Exchange Management Act (FEMA)
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