Non Relaisation of Export proceeds by SEZ, FEMA

[MEENAKSHI GOYAL]

Hello,

My company is in SEZ unit and export goods to its associated enterprise in Germany in 2005 of 700000 Euro. Out of this 160000 Euro had been received by company but remaining amount is still not received by my comapany and there is no chance to receive that money. Now RBI issued a notice to express why you have not realised remaining amount of export. Please tell me What are the suitable provisions through which I save my company under the provision of FEMA asap.

Posts / Replies

[MUKUND THAKKAR]

Madam,

Do not worry it is happen in business

please giving the communication which you had done with your customer regarding to out standing, if any notice is issued by your company to your customer please submit the same to RBI , and request them to allow condone delay the write-off from your book of account as per RBI write-off guide line. if RBI is satisfy with your explanation, matter not refer to FEMA.

[MEENAKSHI GOYAL]

ThankYou for your prompt reply. suggest me can i give conversation of that case in which 700000 euro has been settled in 160000 euro between both parties (as that case was settled in Germany).

[Naveed S]

In the case of units in Special Economic Zones [SEZ], no Maximum time limit for realization of prescribed.

[MEENAKSHI GOYAL]

Thank You sir for your reply.

[Naveed S]

RBI has announced a further liberalization with respect to ‘bad debts’ arising from unrealized export bills.

[MUKUND THAKKAR]

Dear Naveedji,

if possible please giving the reference. so I can update my self. and forum also.

Thanks

[MEENAKSHI GOYAL]

Can I claim for under reduction in invoice value provision for my company? Becox as per Mater circular no. 14/2013-14 dated 01/07/2013 for export of goods and services

C.16 Reduction in invoice value in other cases. Acc. to this sec

The exporter who is in SEZ unit can be allowed to reduce the Invoice value more than 25% of this limit as per the RBI guidelines. However the Guidelines also suggest that in the case of exporter who fulfills the following condition namely –

1. The commodities exported is not covered with floor price stipulation-
2. The exporter is not on the exporter’s caution list of Reserve Bank of India.
3. On proper adjustment of the export incentive availed if any –

can request for the regularization of the reduction in the invoice value more than the ceiling limit of 25% as mentioned above .

Please suggest me suitable answer.