Respected Forum,
Export proceeds not received. No ECGC coverage. Foreign buyer gone into Liquidation (situation beyond the control of exporter) Drawback received returned to department voluntarily, but without interest. Export proceeds self written off in books but permission of self write-off not applied with A.D. Bank.
My queries:
1. What to do now about interest. Should we also deposit voluntarily, if do not deposit, what serious action by department.
2. How to take permission of self write-off now? if do not take permission, what serious action by department.
Please guide me accordingly.
Exporter Faces Interest Query After Foreign Buyer Liquidation; Write-Off Reflected in Financials Without A.D. Bank Permission An exporter faced issues after a foreign buyer went into liquidation, resulting in non-receipt of export proceeds and voluntary return of the drawback to the department without interest. The exporter self-wrote off the proceeds in their books but did not seek permission from the A.D. Bank. Queries were raised about paying interest and obtaining permission for the write-off. Responses suggested paying interest from the date of goods clearance and consulting the RBI's Master Direction on export write-offs. It was noted that no permission is required if the write-off is reflected in the financial statements. (AI Summary)
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