wordpress blog stats
Connect with us

Hi, what are you looking for?

More Questions than Answers: Finance Ministry FAQs on FEMA Amendment Rules, 2023

These FAQs come in response to the removal of Rule 7 from FEMA, 2000

The concept is online Shopping on Laptops computers and mobile banking, internet payment using credit cards via mobile phones, digital marketing, and E-commerce.

The Finance Ministry tweeted a series of frequently asked questions (FAQs) in an attempt to address the concerns surrounding the Foreign Exchange Management Act (FEMA) Amendment Rules 2023 released on May 16. These FAQs address that only personal expenditures incurred by a person using a credit card when abroad would fall under the amendment. They clarified that current account transactions undertaken by international credit cards in India were already covered under the liberalized remittance scheme (LRS) and added that business trips would not be included under the scheme.  Why has this amendment been made: The government says that the amendment has been made in the interest of uniformity in the various modes of drawl of foreign exchange. It says that debit cards used abroad were already covered under LRS, and Rule 7, which exempted credit card transactions carried out abroad, led individuals to exceed LRS limits. It claims that data from top money remitters under LRS reveals that international credit cards are being issued with limits in excess of $250,000 (which is the limit post which transactions need to be approved by the RBI under FEMA).  Confusion prevails, plenty of questions remain unanswered: These FAQs come in response to the removal of Rule 7 from FEMA, 2000. The removal of this rule brings international credit cards used abroad into the scope of the LRS and imposes a 5% (20% from July 1) tax collected at source (TCS) on them. This amendment left people questioning what would fall under the ambit…

Please subscribe/login to read the full story.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Is it safe to consider all "publicly available data" as public?

News

PhonePe launched an e-commerce buyer app for ONDC called Pincode. We, however, believe that it should also launch a seller app.

News

Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).

News

India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?

News

After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ