Topics
- Buyers Credit (56)
- Buyers Credit Accounting (1)
- Buyers Credit on Precious Metals (6)
- Currency Hedging (3)
- Form 15CA and Form 15CB (5)
- Income Tax (6)
- Letter of Comfort (LOC) / Letter of Undertaking (LOU) (5)
- Letter of Credit (LC) (2)
- LIBOR (7)
- Others (5)
- RBI Regulation & Circulars (18)
- Suppliers Credit (33)
- Withholding Tax (8)
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Articles
- Change in LIBOR Tenures and Impact on Trade Finance
- Swift Code & Messages Used in Buyers Credit Transaction
- Tax Residency Certificate Not Required in Prescribed Format
- Surcharge and Education Cess on Withholding Tax
- Transfer of Limits from One Bank to Another : Buyers Credit Rollover Process
- Buyers Credit on Import of Precious and Semi Precious Stone
- Myanmar Economic Sanctions – Background, Recent Relaxation & Trade Finance
- Buyers Credit on High Sea Sales Transaction
- Withholding Tax (WHT) is applicable on Suppliers Credit Transactions
- How to Calculate Total Cost of Buyers Credit
- Bank Finance for Purchase of Gold
- Buyers Credit with 6 Month Libor Reset
- Review of Trade Credit All-In-Cost Ceiling
- Impact of Libor Review on Trade Finance in India
- Pushing the reset button on LIBOR – Speech by Martin Wheatley
- Certificate of Tax Residency under DDTA (Withholding Tax)
- Buyers Credit on Jewellery
- Overdue Interest and Late Payment Charges on Buyers Credit
- Prepayment of Buyers Credit
- Trade Credit Extended Upto 5 Years for Infrastructure Firms
- Difference Between EURIBOR & EUR Libor
- Banks Insisting of Forward Booking for Buyers Credit Exposure
- 5% WHT as per Sec 194LC not applicable to Buyers Credit
- Form 15CA & 15CB Not Applicable on Interest payment to Indian Bank Branches
- Basel III – Future Impact of Trade Finance
- Suppliers’ Credit or Buyers’ Credit is not available for Merchanting Trade
- IMO Number and Its importance in case of Buyers Credit
- Country-wise Double Taxation Summary Chart on Interest
- Consequence of Non Deduction of Withholding Tax (WHT / TDS)
- Form 15CA and 15CB under Section 195 of Income Tax
- OFAC Countries & Implication on Buyers Credit
- Review of all-in-cost ceiling – Trade Credit
- Buyers Credit All-In-Cost Ceiling may move back to L+200bps from 01/04/2012
- Buyers Credit for Imports Under Direct Documents
- Difference between Buyers Credit and Letter of Credit (LC)
- Comprehensive Guidelines on Foreign Exchange Derivatives
- Recent Changes to India’s Currency Forward Contract Norms for Hedging
- RBI Increase Buyers Credit All-in-Cost Ceiling
- Buyers Credit Accounting Entries
- Infrastructure Companies – Bridge Finance before availing ECB
- Buyers Credit on Capital Goods
- Buyers Credit Interest Rate (LIBOR + Margins)
- Bankwise Letter of Comfort / Undertaking Charges
- Buyers Credit on Gold Import
- LIBOR Rates: Brief, History, Currencies, Maturities
- Transaction where Buyer’s Credit is Restricted
- Sample format of Letter of Undertaking / Comfort (LOU / LOC)
- Import of Platinum, Palladium, Rhodium, Silver
- Buyer’s / Supplier’s Credit on Rough, Cut and Polished Diamonds
- Buyer’s Credit Rollover
Old Article
- Procedure for Buyers Credit in India
- RBI Trade Credit (Buyers/Suppliers Credit) Circular Extract
- WHT (Withholding Tax) on interest on Buyers Credit
- Letter of Comfort / Undertaking (LOC/LOU) Charges
- Buyer’s Credit in Cross Currency
- Supplier’s Credit India – Meaning & Process
- Difference between Buyer’s Credit and Supplier’s Credit
- Buyer’s / Supplier’s Credit Consultants
About the Author
Tag Archives: article
Change in LIBOR Tenures and Impact on Trade Finance
From 01 June 2013, Libor rates will be available for overnight, 1 week, 1 month, 2 months, 3 months, 6 months & 12 months tenure only. These changes as of now are not applicable to Euribor rates yet. Continue reading
Tax Residency Certificate Not Required in Prescribed Format
In September 2012, CBDT had prescribe a format in which Tax Residence Certificate (TRC) was required from April 2013. In the Amendments to Finance Bill 2013, requirement of prescribed format has been done away with. Continue reading
Buyers Credit on High Sea Sales Transaction
What is High Sea Sales ? High Sea Sales (HSS) is a sale carried out by the carrier document consignee to another buyer while the goods are yet on high seas or after their dispatch from the port/airport of origin and before their arrival at the port/ airport of destination. Continue reading
Posted in Buyers Credit, Suppliers Credit
Tagged article, Buyers Credit, Finance, Import Finance, International trade, SME Finance, Suppliers Credit, Trade Credit
4 Comments
Withholding Tax (WHT) is applicable on Suppliers Credit Transactions
Withholding Tax is applicable on Suppliers Credit Under Sec 195 of Income Tax Act 1961. Additionally DTAA treaty of the respective country has to be referred for the definition of interest to arrive at final conclusion. Continue reading
Posted in Suppliers Credit, Withholding Tax
Tagged article, Double taxation, Finance, Import Finance, International trade, SME Finance, Suppliers Credit, WHT, Withholding Tax
2 Comments
Difference between Buyers Credit and Letter of Credit (LC)
LC is one of the payment mode used in the International Trade between importer and exporter to cover third-party credit risk. Meaning if the importer defaults, his bank will have to pay on his behalf. Whereas, Buyers credit is a funding mechanism used by importer to funds his transaction. Continue reading
RBI Increase Buyers Credit All-in-Cost Ceiling
To Avail Buyer’s / Supplier’s Credit: E: sanjaymandavia@gmail.com, M: +919825560186 RBI reviewing the developments in global finance markets and the fact that domestic importers are experiencing difficulties in raising Trade Credit (Buyers Credit / Suppliers Credit) within the existing all-in-cost ceiling, RBI has … Continue reading
Buyers Credit Accounting Entries
Buyers Credit Essential Accounting Treament, Entries and Disclosures in books of Accounts Continue reading
Posted in Buyers Credit, Buyers Credit Accounting
Tagged article, Business, Buyers Credit, Finance, Import Finance, Trade Credit
6 Comments
Transaction where Buyer’s Credit is Restricted
Type of transaction where buyer’s credit cannot be done are Local Trade, Advance Payment, Merchanting Trade, Intermediary Trade Transaction and Import of Services. Continue reading
Posted in Buyers Credit, Suppliers Credit
Tagged article, Business, Buyers Credit, Finance, Import Finance, India, International trade, Suppliers Credit, Trade Credit
4 Comments
Buyer’s Credit from Mauritius Based Foreign Bank
To avail Buyer’s / Supplier’s Credit…E: sanjaymandavia@gmail.com, M: +919825560186 Since last week or so, Foreign bank branches based out of Mauritius are either not able to quote or are quoting above the RBI prescribed ceiling for 6 months LIBOR + 200 … Continue reading
Buyer’s / Supplier’s Credit Consultants
Person / Firm who co ordinates with Indian Overseas Branches or Foreign Bank and arranges best possible quote for transactions. They do not directly represent any of these bank. They are also known as Buyers Credit Brokers & Buyers Credit Agents. Scope of Activity, Technical Aspect, arranging quote and get funding done. Continue reading
Posted in Buyers Credit, Suppliers Credit
Tagged article, Business, Buyers Credit, Comfort letter, Finance, Import, Import Finance, India, Updates
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Supplier’s Credit India – Meaning & Process
Supplier’s Credit relates to credit for imports into India extended by the overseas suppliers or financial institutions outside India.Usance Bills under Letter of Credit (LC) issued by Indian bank branches on behalf of their importers are discounted by Indian bank overseas branches or Foreign bank. Paying your suppliers at sight against Usance bills under letter of credits. Continue reading
Buyer’s Credit in Cross Currency
Note: Since the time this article was written, 6 Month Euribor has come down from 1.79% (July 2011) to 0.325%. Concept of cross currency still holds but the example would change. Please take below example as reference only. Continue reading
Posted in Buyers Credit, LIBOR
Tagged article, Business, Buyers Credit, Forward Premium, Import Finance, India, London Interbank Offered Rate, Updates
2 Comments
Letter of Comfort / Undertaking (LOC/LOU) Charges
Normally importers would tend to look at Interest Cost provided by Foreign bank (Indian bank overseas branches or Foreign bank) on deciding which offer to accept. But this is a wrong approach. Importers should look at overall cost. Overall cost would be Foreign bank interest cost and LOU charges of your bank. Continue reading
WHT (Withholding Tax) on interest on Buyers Credit
Under Sec 195 of Income Tax Act 1961, Tax is required to be deducted on the interest amount paid by the Indian corporate to overseas lenders (bank / suppliers) on the loans taken. Impact on Importers and Process flow of payment of Withholding Tax Continue reading
Posted in Buyers Credit, Withholding Tax
Tagged article, Business, Buyers Credit, Finance, India, Tax, Tax treaty, Taxation, Updates, WHT, Withholding Tax
7 Comments
RBI Trade Credit (Buyers/Suppliers Credit) Circular Extract
Trade Credits’ refer to credits extended for imports directly by the overseas supplier, bank and financial institution for maturity of less than three years. Depending on the source of finance, such trade credits include suppliers’ credit or buyers’ credit. Suppliers’ credit relates to credit for imports into India extended by the overseas supplier, while buyers’ credit refers to loans for payment of imports into India arranged by the importer from a bank or financial institution outside India for maturity of less than three years Continue reading
Posted in Buyers Credit, RBI Regulation & Circulars, Suppliers Credit
Tagged article, Business, Buyers Credit, Finance, Import Finance, India, International trade, RBI, Trade Credit, Updates
10 Comments
Procedure for Buyers Credit in India
Importers trying to take buyers credit for first time, should go through do initial checks likes whether non fund based limits is in place and for what tenure, is lou format is acceptable to their bank and other operational issues. Continue reading
Posted in Buyers Credit
Tagged article, Business, Buyers Credit, Comfort letter, Finance, Import Finance, Non Fund bases limit, Updates, Working Capital
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Buyer’s Credit – Definition & Meaning
Buyer’s Credit refers to loans for payment of imports into India arranged on behalf of the importer through an overseas bank. Article gives details about Benefits, Process Flow, Cost Involved and Regulatory Framework. Continue reading
