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FCTRS

  • CA Amritpal Singh

    • FCTRS

     FCTRS stands for Foreign Currency Transfer of Shares.

     

    Reporting

    In FCTRS Reporting is to be done by the Transferor/Transferee who are Resident in India.

    Main criteria or onus of proof lies on a person who are Resident in India.

    In case of individuals, reporting can be done by a person resident in India after registering as a Business user and the authority letter is to be on the name of the Individual.

     

    Earlier History

    Previously the reporting of FCTRS was done manually or on the website ebizportal.in . That was a pretty easier concept rather than the today scenario.

    Previously reporting of FCTRS was done under ARF form.

     

    Reporting for Transfer of shares

    The Form FCTRS is basically filed for the Transfer of shares for the following transactions:-

     

    1. From a person resident outside India holding such instruments on a repartriable basis to a person resident outside india holding such capital instruments on a non repartriable basis.
    2. From a person resident outside india holding such capital instruments on a repartriable basis to a person resident in India.
    3. Buy Back of shares Pursuant to a scheme of merger/de-merger/amalgamation of Indian Companies approved by NCLT

    NO Reporting is required in the following case

    When the transfer of Capital instruments is by way of sale by a  person resident outside India holding such instruments on a non repartriable basis to a person resident in India.

    Time Limit

    Form FCTRS is to be filed within 60 days of transfer of capital instruments or receipt/remittance of funds whichever is earlier

    Form FCTRS is to be filed by

    Transfer of reporting is to be done by the Trasferor/ transferee who is resident in India and it is to be done by every tranche of payment.

    Onus of proof lies with the resident transferor/ Transferee or the person resident outside india holding capital instruments on a non-repratriable basis.

    Fees

    There is no Statutory Fees. Person who is authorized to file has to create a login credentials on RBI portal and file the same.

    Attachments

    The following documents are to be attached in case of FCTRS

    1. Copy of KYC of the buyer
    2. Copy of FIRC in case of Foreign inward remittance received by Indian Bank
    3. Consent letter from Buyer and Seller
    4. Valuation Certificate From Registered Valuer.

     

     

    For More details on FEMA EXPERT advise contact below:-

     FCS Richa Kumar

    8860483280

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