Taxmann's foreign exchange law and practice

The patronage extended to the first edition of this book by company executives, advocates and consultants has encouraged and inspired me to bring out the second edition incorporating therein up-to-date amendments in the law, latest circulars/notifications issued by the Reserve Bank and the Central Government as well as the latest judicial pronouncements on the relevant law by various judicial bodies including the Supreme Court of India Actually, a second edition was long overdue but the pressure of professional work stood in my way of devoting sufficient time to bring the work to completion till now.

Foreign exchange law has continued to assume greater and greater importance over the years as the foreign exchange balances of the country came under severe strain due to outpacing of exports by imports. According to Government sources, foreign exchange reserves stood at Rs. 6,382 crores as on 31-10-1988 compared to Rs. 7,287 crores as on 1-1-1988. Though foreign exchange earnings by way of exports are increasing, yet outgoings of foreign exchange due to imports and repayment of debts taken in the past for the development of the country will be more for many years to come. The authorities have continued to express its concern with the increasing contraventions of the foreign exchange law from time to time. To encourage voluntary compliance with the laws, the Central Government came out with an Amnesty Scheme to enable the people to declare any assets held by them outside India in contravention of FERA. Under this Scheme, assets worth Rs. 64 crores (approx.) were declared.

Foreign Exchange Regulation Act, 1973 has not seen any amendment as such but the law has grown further onsiderably through the judicial process since the first dition