The document provides information about the Foreign Exchange Management Act (FEMA) of 1999 and how it replaced the earlier Foreign Exchange Regulation Act (FERA). FEMA aims to consolidate and amend foreign exchange laws to facilitate external trade and payments. It is applicable across India and to Indian residents operating abroad. Key differences between FEMA and FERA include FEMA being more liberal and simplified with 49 sections compared to FERA's complex 81 sections. FEMA also introduces updated definitions, widens authorized persons, and considers residents similar to income tax law.
The document provides information about the Foreign Exchange Management Act (FEMA) of 1999 and how it replaced the earlier Foreign Exchange Regulation Act (FERA). FEMA aims to consolidate and amend foreign exchange laws to facilitate external trade and payments. It is applicable across India and to Indian residents operating abroad. Key differences between FEMA and FERA include FEMA being more liberal and simplified with 49 sections compared to FERA's complex 81 sections. FEMA also introduces updated definitions, widens authorized persons, and considers residents similar to income tax law.
The document provides information about the Foreign Exchange Management Act (FEMA) of 1999 and how it replaced the earlier Foreign Exchange Regulation Act (FERA). FEMA aims to consolidate and amend foreign exchange laws to facilitate external trade and payments. It is applicable across India and to Indian residents operating abroad. Key differences between FEMA and FERA include FEMA being more liberal and simplified with 49 sections compared to FERA's complex 81 sections. FEMA also introduces updated definitions, widens authorized persons, and considers residents similar to income tax law.
• So what is FEMA ? • What is FERA and how it is related to FEMA. • Salient features of FEMA. • Difference between FERA and FEMA. Recent News Dec 5th 2012 : Objection raised by opposition on FDI in multi brand is put to vote and opposition loses @ Lok Sabha.
Dec 6th 2012:
Opposition raises irregularities in the conduct of Walmart as they had violated the regulations in FEMA, before FDI was made possible.
Dec 7th 2012 :
The same happens @ Rajya Sabha when objection by opposition was put to vote regarding FDI in multi brand. • The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA came into act on the 1st day of June, 2000. • The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. • FEMA is applicable to the all parts of India. The act is also applicable to all branches, offices and agencies outside India owned or controlled by a person who is resident of India. FROM FERA TO FEMA • Liberal form of FERA. • Extends whole of India. • It is more human and natural. • Removes restrictions on drawal of foreign exchange. SALIENT FEATURES OF FEMA • Citizenship abolished and residentship introduced. • Greater importance to IT. • Realisation, repartiation and surrenderof foreign exchange is now governed by FEMA. • Resident foreign currency account (RFC). • Posssession and retention of foreign currency. • Foreign currency, foreign security or immovable property. Difference between FEMA and FERA Differences FERA FEMA 1. Provisions Complex 81 Sec Simple 49 Sec
2.Definitions Current A/c not Current a/c,
defined service all defined 3.Authorised Narrow Definition Has been widened Person to include banks
4.Compatibility Not dealt Considers resident
with IT in India similar to IT 5.Punishment type Criminal offence Civil Offence, with monetary fine
6.Quantity of 5 Times the Amt. 3 times the Amt.
monetary penalty
7.Appeal AA went to high Special dir.
Court (appeals), Appelate Tribunal / High C 8.Right of No help allowed Sec 32 gives rt to assistance help of legal practitioner ? THANK YOU