GST Plus - Get Daily updates,support,whatsapp Group & reply to GST Notices etc.!! Call : 011-411-70713 !!

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     21 September 2021

Export bill Write Off

Hi, there were previously experts answering queries and on customs. Maybe you can repost this same question in that section. Or try the tax section for quick answer. I read the rbi circular, it says write off of 10% of sales value. I checked another useful tax blog and they have advised to approach rbi for writeoff and other way incentives under provisions of FT (D&R) 

https://taxguru.in/dgft/write-offs-unrealized-export-bills.H T M L



 4 Replies

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     19 September 2021

I think 10% or 5% of the invoice value written off by shipping people is 100% tax deductible. so write off

By Unrealised bills a/c 10% value

To Receivables a/c 10% value

and then write off the rest of the amount like 9 lakhs 

By Bad Debts a/c

To Receivables a/c

I think you will get tax benefit in % as per the IT act

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     19 September 2021

U/s 36(2)(iv) where any such debt or part of debts is written off as irrecoverable in the accounts of the previous year and the Assessing Officer is satisfied that such debt or part has become a bad debt in any earlier previous year not falling beyond a period of which previous years immediately preceding the previous year in which such debt or part is written off, the provisions of sub-section (6) of section 155 shall apply. It means that the assessment made for these years shall be re-opened and total income shall be recomputed after allowing the claim for bad debts.

I think there is a small catch here, Tax laws are advising to do

Supplier a/c

To Receivables a/c

This is one of the criteria where you can claim for bad debts. I hope you will find better answers if you browse these sections`

Kallol Sarkar

Kallol Sarkar (Accountant)     21 September 2021

How much of that unrealized value 10 lacs can be written off from the perspective of RBI guidelines only (not from income tax perspective)?

 

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     21 September 2021

Amongst all of the websites, this will answer your query adequately which narrates procedures for writeoff between 10-100%

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9145


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags