75th Founding Day Lecture Meeting on “India@2030” Know More

July 2010

A.P. (DIR Series) Circular No. 54, dated 26-5-2010 — Remittance towards partici-pation in lottery, money circulation schemes, other fictitious offers of cheap funds, etc.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
Reading Time 1 mins
fiogf49gjkf0d

New Page 2

Part C : RBI/FEMA

60 A.P. (DIR Series) Circular No. 54, dated  26-5-2010 —
Remittance towards partici-pation in lottery, money circulation schemes, other
fictitious offers of cheap funds, etc.

This Circular reiterates that remittance from India in any
form towards participation in lottery schemes existing under different names,
like money circulation scheme or remittances for the purpose of securing prize
money/awards, etc. is prohibited under FEMA.

It also clarifies that any person resident in India
collecting and effecting/remitting such payments directly/indirectly outside
India will be liable for prosecution for contravention of FEMA as well as
regulations relating to Know Your Customer (KYC) norms/Anti Money Laundering
(AML) standards.

Download PDF

You May Also Like

Direct Tax Instruction No. 4, dated 25-5-2010 — F.No. 275/23/2007-IT(B) — Certificate of lower deduction for non-deduction of tax at source u/s.197 of the Income-tax Act — matter reg

S. 115JB — For purpose of computing book profits u/s.115JB, although provisions made by an assessee are not allowable as deduction, yet certain provisions which are capable of estimation with a reasonable certainty without quantification are allowable, as