If you have invested foreign currency in India and you want to refund the excess amount, you will need to submit the following documents to the bank:
- Proof of investment: This could be a copy of the foreign inward remittance certificate (FIRC), a copy of the share certificate, or a copy of the investment agreement.
- Certificate from the statutory auditor: This is a certificate from the auditor of the company in India stating that the excess foreign investment has not been utilized and that no interest has been earned on it.
- Form 15CA and Form 15CB: These are forms that are used to declare the amount of foreign investment that is being refunded and the tax that has been deducted on it.
- Original FIRC: This is the original copy of the FIRC that was issued when the foreign investment was made.
- Letter to the banker to debit the company’s account: This is a letter from the company to the bank requesting that the excess foreign investment be refunded.
MCQs on List of Documents for Refund of Foreign Investments
- Which of the following is not a document that is required for a refund of foreign investment?
- A. Proof of investment
- B. Certificate from the statutory auditor
- C. Form 15CA
- D. Original FIRC
- E. Letter to the banker to debit the company’s account
The correct answer is C. Form 15CB. Form 15CB is a certificate from the auditor certifying that the investee company is making a certain amount of payment to a foreign party in a given currency. This form is only required if the excess foreign investment is being used to make a payment to a foreign party.
- What is the purpose of the certificate from the statutory auditor?
The certificate from the statutory auditor is used to verify that the excess foreign investment has not been utilized and that no interest has been earned on it. This is important because the government of India wants to ensure that foreign currency is not being used for speculative purposes.
- What is the purpose of Form 15CA and Form 15CB?
Form 15CA and Form 15CB are used to declare the amount of foreign investment that is being refunded and the tax that has been deducted on it. This information is important for the government of India to track foreign investment flows into and out of the country.
- What is the original FIRC?
The original FIRC is the document that was issued by the bank when the foreign investment was made. It contains details of the investment, such as the amount of money, the currency, and the date of the investment. The original FIRC is required for a refund of foreign investment because it is proof that the investment was actually made.
- What is the letter to the banker to debit the company’s account?
The letter to the banker to debit the company’s account is a letter from the company to the bank requesting that the excess foreign investment be refunded. This letter is required to authorize the bank to release the funds from the company’s account.