Is it compulsory under FEMA regulations to apply for extension of time for export proceeds realisation (after expiry of the initial time limit) or can we directly apply for writing of as Bad Debt (as the given time and the maximum extension period allowed i.e. 12 months is also expired and it is known that we can't realise the outstanding proceeds)
19 January 2010
Yes, under FEMA it is compulsory to get the relisation time extended if the relisation gets delayed. this can be done by making an application to the AD in specified form along with the copies of invoices whose realisation got delayed.
The Forex bad debts can be written off only after obtaining a clearance from the AD. Venkat.
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