[Inpycon] Receiving funds from foreign sponsors

[Dhananjay Nene]

On Sun, Mar 13, 2011 at 8:47 AM, Ramdas S <ramdaz at gmail.com> wrote:
>
>
> On Sun, Mar 13, 2011 at 2:49 AM, Noufal Ibrahim <noufal at gmail.com> wrote:
>>
>> On Sat, Mar 12 2011, satyaakam goswami wrote:
>>
>> >>
>> >> Thanks but I think we should get someone with first hand experience
>> >> regarding this kind of thing rather than web links. It can be a thorny
>> >> issue.
>> >
>> > by tomorrow i should be getting first hand info, also CA's can be persons to
>> > ask about this kind of cases.
>>
>> [...]
>>
>> That'd be really useful. Thanks!
>
> Noufal. I dont think this is an issue at all. You must go ahead and close things. Getting funds into India is the least of the problems you'll have, since our government is very friendly when it comes to receiving funds, and you'll have to explain a lot when you want to send even 500 USD out. It's a very normal banking function, and they can wire funds or even send a banker's cheque.

I've generally found the receipt of funds to be very hassle free. What
you do need is a good relatiionship with your bankers to get a good
exchange rate. However if the funds need some different treatment than
a simple income, I've run into some farily onerous documentation
processes with the bank. Since IPSS is a non-profit society, I am not
sure how much these documentation requirements will be or if at all
they will be required, but it is best resolved by a communication
between IPSS office bearers and the bank where the account is held and
money will be received. Sometimes a foreign currency remittance
certificate will need to be issued by the bank and they will not issue
it until every small document is accounted for. While the guidelines
are issued by RBI, each bank may choose to enforce it in its own way -
so best to get in touch with the bank.

To repeat:
Receiving funds should not be a problem.
Treating them as tax exempt is a question mark. The CA may well
request that a certificate of the reason and nature of the remittance
is required from the bank. If not (since IPSS is a non-profit body),
that should not be an issue. If required, there's substantial
documentation necessary. This is best discussed with the bank itself.

Dhananjay




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