Page 59 - Banking Finance July 2023

RBI CIRCULAR

RBI

CIRCULAR

Remittances to International Financial Exchange Management Act, 1999 (42 of 1999) and are
without prejudice to permissions/approvals, if any,
Services Centres (IFSCs) under the
required under any other law.
Liberalised Remittance Scheme (LRS)
Agency Commission for collection of
June 22, 2023
indirect taxes through ICEGATE payment
1. Attention of Authorised Persons is invited to A.P. (DIR
gateway
Series) Circular No. 11 dated February 16, 2021 and
A.P. (DIR Series) Circular No. 03 dated April 26, 2023 June 14, 2023
on “Remittances to International Financial Services
Centres (IFSCs) in India under the Liberalised Remittance 1. Please refer to Para 21 of our Master Circular on
Scheme (LRS)”. Conduct of Government Business by Agency Banks -
2. Presently, remittances to IFSCs under LRS can be made Payment of Agency Commission dated April 1, 2023
related to claiming of agency commission.
only for making investments in securities in terms of
A.P. (DIR Series) Circular No. 11 dated February 16, 2. Since certain transactions related to collection of
2021. In view of the gazette notification no. SO 2374(E) indirect taxes through ICEGATE (CEP) payment gateway
dated May 23, 2022 issued by the Central Government, are now being reported by agency banks to Mumbai
it is directed that Authorised Persons may facilitate Regional Office (MRO), RBI with effect from April 01,
remittances by resident individuals under purpose
2023, it has been decided to modify paragraph 21 of
‘studies abroad’ as mentioned in Schedule III of Foreign the aforesaid Master Circular. The modified paragraph
Exchange Management (Current Account Transactions)
21 will read as follows:
Rules, 2000 for payment of fees to foreign universities
“Agency banks are required to submit their claims for
or foreign institutions in IFSCs for pursuing courses
agency commission in the prescribed format to CAS
mentioned in the gazette notification ibid.
Nagpur in respect of Central government transactions
3. Authorised Persons shall bring the contents of this
and the respective Regional Office of Reserve Bank of
circular to the notice of their constituents and
India for State government transactions. However,
customers.
agency commission claims pertaining to GST receipt
4. The directions contained in this circular have been transactions, transactions related to direct tax
issued under sections 10(4) and 11(1) of the Foreign collection under TIN 2.0 regime, and transactions

BANKING FINANCE | JULY | 2023 | 53