Export sales not realised payment not received from foreign buyer

Dear sir,

we wish to formally write off  an unrealized export sales. 

despite of legal proceedings, the debt has become irrecoverable.

The export proceeds have remained outstanding .
​Adequate recovery efforts have been made.
and the amount to write off is more than 10% of prescribed limits.

we have approached our bankers who will forward our request to RBI. we have collected required certificates & documents needed for BANKERS./ RBI

want to know from accounting /income tax point of view .

can we write off outstanding amt  books of accounts in two accounting years.

ONE OUTSTANDING INVOICE THIS ACCOUNTING YEAR , AND ANOTHER OUTSTANDING INVOICE IN THE NEXT ACCOUNTING YEAR.

 and apply for permission for write off for full outstanding.

Thanks & Regards

 

 

 

Replies (3)
Quick Summary
Unrealised export dues can be written off in books, even across two years invoice wise. Deduction allowed in the year of write off. Ensure RBI or bank approval and EDPMS records align to avoid compliance issues.

You can write off the invoices in two different accounting years. Income Tax law allows the deduction in the specific year the amount is actually written off in the books. Ensure your bank and EDPMS records stay synchronized with your staged accounting entries to prevent "caution listing" by the RBI.

As per reporting, write off is a write off. You need any bankers permission for it. 

 

I meant you don't need anyone's permission for it as per the conceptual framework 

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