FEMA Services

The Foreign Exchange Management Act (FEMA) is an Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating direct investment in and outside India, external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

When a business enterprise imports goods from other countries, exports its products to them or makes investments abroad, it deals in foreign exchange. Foreign exchange means 'foreign currency' and includes:-

  • Deposits, credits and balances payable in any foreign currency;
  • Drafts, travellers' cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency;
  • Drafts, travellers' cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency.
  • The violation or non-compliance of FEMA, either deliberate or due to ignorance, can entail heavy punishment or penalties of different forms.

    Every service provider of a taxable service is required to take registration with the jurisdictional Central Excise Office. A 'registered' service provider is referred to as an 'ASSESSEE' (Refer section 69 of Finance Act, 1994)