Dear Experts,
FCRA Act Under the recent amendment it is prohibited to transfer funds from one FCRA registered entity to another FCRA registered entity
for example, There are two FC registered Trust entities. A & B. . A deputes its employees who have the expertise to work on project of B . Hence A raises a debit note on B on the salaries of A's employees and the same is re-imbursed by B by transferring the funds to A. Will this amounts to a transfer of Funds from B to A. Our auditors are of the view that since transfer of funds is prohibited between two FCRA registered entities after Sep , it is necessary that no transactions like debit note/credit notes should be made. whether expenses incurred by one FCRA entity on another will amount to transfer of funds
Whether if B is a non FCRA entiry is it allowed to transfer funds from A ( FCRA registered entity) to B( non FCRA registered entity)
Please clarify as per FCRA act.
Thanks
Read more at: https://www.caclubindia.com/forum/transfer-of-funds-between-fcra-registered-entities-587874.asp
