(CA Inter)Jan 27/Sep26

11 The dealers in precious metals/ precious stones, can be considered as persons carrying on designated businesses or professions, when- (a) they engage in any cash transactions with a customer of Rupees ten lakhs, carried out in a single operation (b) they engage in any cash transactions with a customer of Rupees ten lakhs, carried out in a single operation or in several operations that appear to be linked. (c) they engage in any cash transactions with a customer of equal to or above Rupees ten lakhs, carried out in a single operation or in several operations that appear to be linked (d) they engage in sale or purchase of precious metal/precious stones and having annual turnover of Rupees twenty lakhs or above

10 Dhruv, is a pilot in Bangkok airways. He flies for 15 days in a month and thereafter takes a break for 15 days. During the break, he is accommodated in ‘base’, which is normally the city where the Airline is headquartered. However, for security considerations, he was based at Delhi. During the financial year, he was accommodated at Delhi for 182 days. Determine the legal position as regards the residential status of Dhruv under the given situation: (a) Dhruv cannot be considered to be a Person Resident in India. (b) Dhruv can be considered to be a Person Resident in India due to her stay for 182 days in India (c) Dhruv cannot be considered to be a Person Resident in India due to her stay for less than 183 days in India. (d) Dhruv can be considered to be a Person Resident in India due to her stay in Delhi for security consideration

9 Rahul, Son of Mr. Manish was going to USA under cultural exchange programme of his college. For meeting Rahul’s expenses in USA, Mr. Manish purchased 5000 USD from an authorized person on 15th February 2018. Rahul came back to India on 15th March 2018. At the time of his return to India he was having 1850 unspent USD with him. From the following which option is the best suited for the above situation – (a) Unspent foreign exchange shall be surrendered to the authorized person within 180 days from the date of his return to India. (b) Unspent foreign exchange shall be surrendered to the authorized person within 180 days from the date of purchase of foreign exchange. (c) Unspent foreign exchange shall be surrendered to the authorized person within 90 days from the date of his return to India. (d) Unspent foreign exchange not exceeding 2000 USD may be retained by a person resident in India

8 Peter a citizen and resident of India, in the year 2011, got a job in a MNC in Germany. He planned to shift. Due to travelling and shifting, studies of his daughter Lisa was effected a lot, so he decided to admit her into Mayo College at Ajmer for her further studies. On 23rd March 2017, Peter, along with his wife and daughter reached India from Germany. On 22nd April 2017, Lisa got admission in the college and since then she is living in India only. Peter and his wife returned Germany on 1 st May 2017. Peter did not visited India during the financial year 2017-18, however his wife was in India from 2nd December 2017 to 2nd January 2018. During the financial year 2018-19, Peter was in India for 185 days due to his deployment and Lisa’s ill health. From the following who will be treated as person resident in India for the financial year ended on 2018-19 ---

6 A Limited, an Indian company holds a commercial plot in Chennai, India. It intends to sell the same. M/s Super Seller is a real estate broker with Head Office in the USA. M/s Super Seller is appointed to find buyers for the land. A company Glory Inc., based out of USA is identified as a buyer. Glory Inc., is controlled from India and is hence a Person Resident in India under FEMA provisions. Glory Inc., agrees to buy the land for USD 6,00,000 (assume 1 USD = Rs.70). M/s Super Seller is to be paid commission at the rate of 7% of the sale proceeds. The commission is to paid to the H.O of M/s Super Seller in USA. Decide, in light of the relevant provisions of FEMA, 1999, which of the following is correct (Ignoring TDS implications arising under the Income Tax Act, 1961): (a) Prior permission is not required for remittance of commission upto USD 25,000. For balance commission of USD 17,000, permission of RBI is to be sought by A Limited. (b) Prior permission is not required for remittance of commission upto USD 30,000. For balance commission of USD 12,000, permission of RBI is to be sought by A Limited. (c) Prior permission is not a tall required for remittance of the entire commission. (d) Prior permission is required to be taken from The Reserve Bank of India for the entire amount of commission.

5 Mr. A is an authorized dealer holding a valid Authorization issued by the Reserve Bank of India under section 10 of the FEMA, 1999. During the course of his business, he violated one of the conditions subject to which the Authorization was granted to him. The Adjudicating Authority imposed a penalty of Rs. 1,50,000 under section 13 (being 3 times the amount involved in the violation, i.e. Rs. 50,000). Mr. A accepted the default. State the time limit before which Mr. A should pay the penalty, assuming he does not prefer an appeal to the Appellate Authority:

4 Mr. Raman, a non-resident, has a Special Investment Plan (SIP) with a mutual fund in India.Mr. Raman, due to some financial problems, requested his brother Mr. Raghav who is an Indian resident, to make the payment of few subsequent instalments of SIP on his behalf. You are required to advise Mr. Raghav whether such transaction is permitted considering the provisions of Foreign Exchange Management Act (FEMA), (a) Such transaction is not permitted as it amounts to payment for the credit of non-resident. (b) Such transaction is permitted as Mr. Raghav can enter into such transaction on behalf of his non – resident brother. (c) Such transaction is not permitted as Mr. Raghav cannot enter into such transactions on behalf of his non- resident brother. (d) Such transaction is permitted if Mr. Raghav obtains prior permission of the Reserve Bank of India.

3 Mr. Z was appointed as representative of ABC Company for a 10 days corporate programe organized in USA. During the said period in USA, he was diagnosed with the severe kidney disease, so decided to have a treatment done in USA. State the maximum amount that can be drawn by Mr. Z as foreign exchange for the medical treatment abroad

2 A highly reputed construction company of Mumbai, decided to launch an ultra modern residential project in Goa especially for non-resident HNI Indians. For the purpose it appointed 4 agents worldwide to look for prospective buyers for 12 exclusive flats. The terms of their appointment clearly mentioned that they themselves will be responsible for inward remittance on the flats booked by them. As the project was one of its kind, so it got overwhelming response and all the flats got booked. However only 2/3 of the price of each flat could be remitted into India through proper channel during the financial year ended on 31st March 2019. Price of per flat was USD 1500000 inclusive of all. From the following howmuch maximum commission can be given to each agent, without any intervention of any authority. Each agent booked 3flats

1 Mr. Raj, a resident of India went to Australia for a business deal in January 2019. He realised foreign exchange for bearing expenses while staying there for the business purpose. After maturing the deal, he returned back to India in 28th of February, 2019. Mr. Raj was left with certain unused foreign exchange. He retained the foreign exchange with him for future use. Mr. Raj have to return the unused foreign exchange