Can we set-off; of export receivables against import payable

PRAVEEN KUMAR (MBA (Finance) B.Com.(P))   (3443 Points)

07 December 2011  

My query relates to the RBI/2011-12/264 A.P. (DIR Series) Circular No. 47 dt. November 17, 2011, regarding “Set-off” of export receivables against import payables. I need to confirm in this regard that the company which has made import way back in the year 2007 can set off its payables by making export to the same exporter from whom import was made in today's date. i need to add in this that the company has still outstanding payments of that import.

 

Regards