QUERY AGAINST BAD DEBTS WRITE OFF ON SALES ON EXPORT/IMPORT OF GOODS OR SERVICE

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Dear ,

I want to know about the write off provision if i am selling the goods & service to europe and some goods and services bought from UAE then my question if my some export company would be default the payment and denied the payment on such goods and when i finalization my account then can i make it provision for bad debts on export party on my books if yes then please share with me complete rule for provision for bad debts on export on sales and if possible kindly share with me some example.

Thanks & Regards

[Padmanathan KV]

Since your issue is with regard to export proceed, pls check for violation of FEMA provisions. Advisable to contact an expert in this field.

AI Summary

Bad debt provision for export receivables requires assessing foreign exchange compliance before accounting write-off. Question asks whether a seller can create a provision or write-off for unpaid export/import receivables at account finalisation; respondent advises assessing foreign exchange regulatory constraints and consulting an expert, specifically highlighting FEMA compliance before provisioning export receivables.