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9. Dr. Ronak Mosay desires to remit US $ 1,50,000 for payment of prize money to the winning team in a cricket tournament in Canada. He needs to obtain approval from which of the following?

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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Correct Answer

Option AHis 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 100,000\displaystyle 100,000.
Since Dr. Ronak is an individual sponsor remitting USD 150,000\displaystyle 150,000 (which exceeds the USD 100,000\displaystyle 100,000 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.

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