Requirement under FEMA &RBI

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An Indian company imported spare parts from Singapore, but many were found to be defective and rejected. The Singapore supplier waived the sale price. The compliance required under RBI/FEMA involves approaching the importer's AD Category-I Bank with proof of defect and the supplier's waiver. The bank will then process the write-off and regularise the Bill of Entry, potentially requiring RBI approval for larger amounts.

abhijit majumder

abhijit majumder (Querist)
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31 July 2026 Sir
One Pvt Ltd Company import spare parts from singapur. Latter it was found that a good number of spares are defective and so rejected. The indian company(importer) inform the Singapur Company about this fact.The Singapur company in turn wave the entire sale price due from Indian Pvt company(importer).
My query is what is the compliance required to comply under RBI/FEMA exclusively?

There is no problem in compliance in accounts and Income Tax Part .
Regards
Abhijit

Aashok Kumar Sharma online

Aashok Kumar Sharma

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31 July 2026 To comply with RBI/FEMA rules, the Indian importer must approach their AD Category-I Bank with proof of defect (quality/inspection report) and a waiver/credit note from the Singapore supplier. The bank will process the write-off under RBI delegated powers and close/regularize the outstanding Bill of Entry in IDPMS. If the amount exceeds the bank’s delegated authority, prior approval from the RBI Regional Office must be obtained through the AD bank.

abhijit majumder

abhijit majumder (Querist)
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31 July 2026 My sincere thanks To Sir Aashok Kumar Sharma for elaborately discuss the compliance under RBI/FEMA.
Is there any specific Form .(Like we used in Income Tax Act & MCA filing).
Regards
Abhijit

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