sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Latest Circulars »
 RBI imposes penalty on The United Co-operative Bank Ltd., Bagnan Station Road(North), PO- Bagnan, Dist- Howrah, West Bengal
 Auction for Sale (Re-issue) of Government Stock (GS) May 14, 2018
 Auction of Government of India Dated Securities May 14, 2018
 RBI declines to share copies of inspection reports
  RBI - Auction of State Government Securities
 Revised guidelines on lending to Priority Sector for Primary (Urban) Co-operative Banks (UCBs)
 RBI to conduct 7-day Variable Rate Reverse Repo Auction under LAF on May 10, 2018
  Monitoring of foreign investment limits in listed Indian companies
 Auction for Sale (Re-issue) of Government Stock (GS) May 7, 2018
  RBI Announces OMO Purchase of Government of India Dated Securities
 RBI releases Handbook of Statistics on Indian States 2017-18

Set-off of export receivables against import payables - Liberalization of Procedure
November, 18th 2011

RBI/2011-12/264
A.P. (DIR Series) Circular No. 47

November 17, 2011

To

All Category I Authorized Dealer Banks

Madam/Sir,

Set-off of export receivables against import payables-
Liberalization of Procedure

Attention of Authorized Dealer Category I (AD Category I) banks is invited to the fact that the requests received from the exporters through their AD branches for set-off of export receivables against import payables are considered by the Reserve Bank of India. As a measure of further liberalization, it has been decided to delegate power to AD Category I banks to deal with the cases of set-off of export receivables against import payables, subject to following terms and conditions:

  1. The import is as per the Foreign Trade Policy in force.

  2. Invoices/Bills of Lading/Airway Bills and Exchange Control copies of Bills of Entry for home consumption have been submitted by the importer to the Authorized Dealer bank.

  3. Payment for the import is still outstanding in the books of the importer.

  4. Both the transactions of sale and purchase may be reported separately in R Returns.

  5. The relative GR forms will be released by the AD bank only after the entire export proceeds are adjusted / received.

  6. The set-off of export receivables against import payments should be in respect of the same overseas buyer and supplier and that consent for set-off has been obtained from him.

  7. The export / import transactions with ACU countries should be  kept outside the arrangement.

  8. All the relevant documents are submitted to the concerned AD  bank who should comply with all the regulatory requirements relating to the transactions.

2. AD Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

3. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Dr. Sujatha Elizabeth Prasad)
Chief General Manager

Related Press Release

Nov 17, 2011

Liberalization of Export/Import procedures Set-off of export receivables against import payables

 

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions