It mentions one to one matching. But in our case, export proceeds are being adjusted with corresponding import (MTT) as well as other routine export frlm India to same party in UK. But MTT had USA to UK under our Control. Is it correct? Please advise.
Jayanta Bandyopadhyay
Summary: RBI regulations strictly require "one-to-one" matching for Merchanting Trade Transactions, meaning export proceeds must be linked to their specific corresponding import leg. Adjusting proceeds across different transactions or with routine exports is generally not permitted, and you should reconcile your process with your AD bank to ensure compliance.
Malhotra Rajesh & Associates
New Delhi
B.Com
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Goodwin Pumps India Pvt Ltd
Chengalpattu
CA Inter
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N N V Satish & Co.,
Hyderabad
CA Inter
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CCI
Pro
CAclubindia
