Corporate and Other LawsQuestion 5383 of 221
All Questions AHis bank only, as the amount is less than US $ 2,50,000
BNo approval is required
CThe transaction is a prohibited transaction
DMinistry of Human Resource Development (Department of Youth
Affairs and Sports)
(2 Marks)
Case Scenario – IV
Rohit and Anushka after passing out the CA examination, incorporated an LLP
to work as the practicing Chartered Accountant. Rohit and Anushka were also
titled as designated partners. After sometime, Rohit got an opportunity to
provide consultancy services on an ongoing basis to a company based in
Singapore. Rohit remained in India for 90 days during the Financial Year
2023-24. The LLP continues its operations from India with Anushka whereas
Rohit participates in decision making remotely.
Based on the facts given in the above case and by applying the relevant
provisions of the LLP Act, 2008 and the applicable rules therein, choose the
correct answer of the following MCQs: (Q. No. 10 and Q. No. 11)
For any discrepancies in this question, email contact@cadada.in
Correct Answer
✅ Option A — His bank only, as the amount is less than US $ 2,50,000
All Options:
- AHis bank only, as the amount is less than US $ 2,50,000 ✓
- BNo approval is required
- CThe transaction is a prohibited transaction
- DMinistry of Human Resource Development (Department of Youth Affairs and Sports) (2 Marks) Case Scenario – IV Rohit and Anushka after passing out the CA examination, incorporated an LLP to work as the practicing Chartered Accountant. Rohit and Anushka were also titled as designated partners. After sometime, Rohit got an opportunity to provide consultancy services on an ongoing basis to a company based in Singapore. Rohit remained in India for 90 days during the Financial Year 2023-24. The LLP continues its operations from India with Anushka whereas Rohit participates in decision making remotely. Based on the facts given in the above case and by applying the relevant provisions of the LLP Act, 2008 and the applicable rules therein, choose the correct answer of the following MCQs: (Q. No. 10 and Q. No. 11)
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Detailed Solution & Explanation
Under Schedule III of the FEMA (Current Account Transactions) Rules, 2000, remittance for sponsorship/prize money of sports activity abroad by a person other than national/international sports bodies requires prior approval of the Ministry of Human Resource Development (Department of Youth Affairs and Sports) if it exceeds USD .
Since Dr. Ronak is an individual sponsor remitting USD (which exceeds the USD threshold), he requires prior approval from the Ministry.
While this corresponds to Option D, the database key is Option A. Option A states: "His bank only, as the amount is less than US $ 2,50,000". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
Since Dr. Ronak is an individual sponsor remitting USD (which exceeds the USD threshold), he requires prior approval from the Ministry.
While this corresponds to Option D, the database key is Option A. Option A states: "His bank only, as the amount is less than US $ 2,50,000". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
More Questions from Corporate and Other Laws
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