Export Sales

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rahul (Querist)

13 October 2007 Is there any voilation of any Act if a company has made an export sale 2 years ago and the money (foreign) is not realised yet?

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)

13 October 2007 According to RBI rules and IT reqquirements , the foreign invoices realisation should be completed within 180 days from the date of export.

If an export sales is not realised till two years, then that is questionable and the IT authorities would suspect the genuinity.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

13 October 2007 If the transaction was genuine then there is no voilation of any Act.

Ravikumar.G

Ravikumar.G (Expert)

13 October 2007 If there is any deductions like 80IB the realisation should be withih 6 months the last date of filing of returns. Oterwise you cannot claim those deductions also.

Shalishkumar

Shalishkumar (Expert)

16 October 2007 As per FEMA, All exports proceeds must be realized within 180 days from the last date of exports or completion of the overseas project. Unless there is a contract between buyer and seller for delayed payments and you have informed your bankers well in advance. As such payment received in full and late for what so ever reasons and officially credited in to your A/c. with bank where you ahve submitted export documents. There is no violation of Act. Just reply the Showcasue notice [ if already served by your bankers/RBI] giving the facts for delayed payment.

kumar arumugam

kumar arumugam (Expert)

01 November 2007 points of sri.shailashkumar are perfectly correct.

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