Advance payment of exort sales

[satbir singhwahi]

advance payment received on 13.10.2011 in bank . Export  made on 15.01.2013. The export not made within one year of advance.  Now what is the procedure to get this payment adjusted against exort made. As Bank says it is default.  Is there any procedure to be followed with RBI to get default corrected.

[YAGAY and SUN]

Compounding is the way out for such types of offences.

[CASeetharaman KC]

Please resort to compunding as suggested by learned Shri Khatri

AI Summary

Advance payment default: compounding recommended to regularize delayed export receipts and address bank classification consequences. Advance payment for export was received in the bank but the export occurred after one year, leading the bank to treat the receipt as a default; the advised remedial mechanism is compounding to regularise the delayed export realisation and correct the bank's classification.