Export invoice of machinery items raised in 2015-16 of Rs. 20 lacs. The customer paid Rs. 10 lacs in 2017-18. Remaining Rs.10 lacs will not be paid by the customer on the ground that the material dispatched was not fully technically compliant and as they had to make some alteration to the goods at their own cost so as to bring it in workable condition. The customer already issued us a letter that on the above mentioned ground they have deducted remaining 10 lacs. How to write off this unpaid Rs. 10 lacs.?
Now as per RBI guidelines, Self basis write off is allowed @ 5% of the total export proceeds realized during the previous year which comes to Rs. 13.50 lacs in our case.
Then what will be the maximum amount that we can write off for this single invoice?
Please suggest
CAclubindia
