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CS Professional · IFSCA - Regulations, Listing and Compliances · Book-keeping, Accounting, Taxation and Financial Crime Compliance Services and TAS

Anvay Accounting IFSC Pvt Ltd offers outsourced accounting to a Singapore client and receives its fees in foreign currency. Which approach is consistent with the way IFSC units generally conduct such services?

The unit should receive fees in permitted foreign currency. IFSC units operate in freely convertible foreign currency and are treated as persons resident outside India under FEMA, so rupee-only collection or invoice-wise RBI approval is not required.

  1. AReceive fees in Indian rupees only, since the unit is a domestic entity
  2. BReceive fees in permitted foreign currency, as IFSC units are treated as persons resident outside India under FEMA for dealingsCorrect
  3. CReceive fees only through barter arrangements
  4. DReceive fees only after RBI approves each invoice individually

Explanation

IFSC units transact in freely convertible foreign currency and are treated as non-residents for FEMA purposes. The rupee-only and per-invoice RBI approval options do not reflect this regime.

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