Skip to content

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

Rohan Advisory IFSC provides accounting services to a Mumbai-based domestic company that has no foreign link, supplying monthly bookkeeping from GIFT City. A reviewer asks whether this fits the typical permissible scope of IFSC financial services. Which is the best view?

The arrangement must be tested against IFSCA and FEMA conditions. IFSC services are oriented towards non-resident and IFSC clients, and dealings with domestic residents are allowed only under specified conditions, so it is neither automatically permitted nor automatically prohibited.

  1. AFully permitted, as IFSC units serve only resident clients
  2. BNeeds examination against the IFSCA framework, since IFSC services are oriented to non-resident and IFSC clients and domestic-client dealings are subject to specific conditionsCorrect
  3. CAlways prohibited under the Companies Act, 2013
  4. DPermitted only if the fees are paid in cash

Explanation

IFSC units are designed mainly to serve non-resident and IFSC clients, with dealings with domestic Indian persons subject to specific conditions under FEMA and IFSCA rules. Assuming full permission or absolute prohibition overstates the position. Cash payment is irrelevant.

Did you get it right without looking?

One question tells you little. A timed set on Book-keeping, Accounting, Taxation and Financial Crime Compliance Services and TAS shows your real accuracy, how long you take and where you lose marks.

Practise Book-keeping, Accounting, Taxation and Financial Crime Compliance Services and TASFree diagnostic mock

More Book-keeping, Accounting, Taxation and Financial Crime Compliance Services and TAS questions