Our company is engaged in manufacturing of auto parts. In the FY 2012-13 we have exported goods worth Rs 50 lakhs to UK based firm under UT1 Bond (Without payment of duty). After some time span our company realized that UK based firm becomes bankrupt and the dues recoverable from them became doubtful. Our management has decided to make provision for bad and doubtful debts in Balance sheet for FY 2012-13. My question is that should we need to provide for excise duty payable on the export sale becomes doubtful? If yes, what will be nature of liability? contingent or non-contingent Please help ASAP
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Excise duty payable
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The benefit of export without payment of duty will not availale if the payment in foreign convertale currency is not received.Your concered range will ask for FERC(foreign Exchange Remittance Certificate).so, you should keep the provision for the liability which may arise in case of non payment by the buyer.
Dear Sir
Can you quote relevant rule no, section number or case law?
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