Forex transaction: Accepting Rupees from friend and paying on his behalf in British Pound
Ranadip
(Querist) 11 July 2011
This query is : Open
Hello Experts,
Can you please let me know if I am committing any illegal act in India under the following circumstances:
A friend has an open university loan in Euro and he is currently working in India (earning INR). To pay the installments, he plans to transfer the equivalent of the Euro installment in INR to my account in India. And then I transfer the installment from my UK GBP account to the institute in Euro. Will I be breaking any foreign exchange rules in India like FERA? Also, if this is legal, then will I have any tax implications in India for accepting money from him into my Indian bank account?
Thank you.
Regards,
Ranadip
