What will be procedures if the company wants to write off its foreign receivables debtors, as it is not recoverable now? Pls. give me the relevant circular for the write off the debtors with reference to FEMA & RBI.
2 Replies
Sudhag
(Chartered Accountant and Company Secretary. Visit at : www.taxpertpro.com)
(1231 Points)
Replied 29 September 2011
The export proceeds have to be realised within 6 months from the date of shipment. In cases where exports proceeds have to be written off in that case the export incentives taken have to be written back and approval from AD/RBI is required to be taken.
Please refer page 49 of the link: https://www.wirc-icai.org/(S(4113a33ixtiiyeyjlj3rymu5))/material/Due%20Diligence%20under%20FEMA%20by%20CA.%20Sudha%20G.%20Bhushan.pdf
Regards,
CA. Sudha G. Bhushan
sudhag999 @ gmail.com
Amit Kumar
(CA Final Student & Account Executive )
(27 Points)
Replied 23 July 2015
Dear Sir,
Please guide me .
We have some foreign creditor as on 31 st March 2015 from foreign company which is our Holding company.
Now they (H. co) agreed to wave off such liability. So we will write off and close such ledger.
Whats the legal procedure we need to full fill.
like FEMA, RBI , I Tax. Etc.
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