11 December 2013
dear all ...I have to make payment to outside India to a particular supplier $20000 and also I entitled to received $5000 to same person.... so my query is can I neting off whole transaction and received only $15000 ....but one of the my frd said as per RBI I can't netting off ....pls solve this query....
12 December 2013
You can nett off the pymt. But you should have some instrument (like bill copy) of $ 5000 indicating amount obliged by you while filling 15CA/CB certificate with bank.
13 December 2013
As per normal circumstances, what your friend said is correct. Netting is not permitted in India. However as a special case, to clear the Bill of Entry with banker, you need to tell him that you received a credit note from your supplier for $5000 for reason whatsoever it may be and ensure that the BOE is cleared for full value of $20,000 eventhough you pay $15,000 only
CAclubindia
