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: London Interbank Offered Rate
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
Buyers Credit with 6 Month Libor Reset
Banks and Importers consider various factors before going for Buyers Credit transaction for more than 6 months tenure. One such factor is buyers credit with 6 Month Libor Reset option. The below article elaborates on these factors. Continue reading
Impact of Libor Review on Trade Finance in India
Trade Credit (Buyers Credit, Suppliers Credit etc.) perspective, recommendation which are the most relevant are the number of currencies and tenors for which LIBOR is published to be reduced and market participants using LIBOR should be encouraged to consider and evaluate their use of LIBOR Continue reading
Pushing the reset button on LIBOR – Speech by Martin Wheatley
To Avail Buyer’s / Supplier’s Credit: E: sanjaymandavia@gmail.com, M: +919825560186 Note: Since this article was written, below regulation has been implemented. Also Refer Article: Change in LIBOR Tenures and Impact on Trade Finance Mr. Martin Wheatley – Managing Director, FSA, and CEO Designate, FCA – … Continue reading
Difference Between EURIBOR & EUR Libor
EURO based buyers credit is currently funded by most of the banks using EURIBOR which is issued by European Banking Federation and ACI. A similar rate is issued by British Banking Association known as EUR Libor but is not often used by bankers for funding buyers credit transactions Continue reading
LIBOR Rates: Brief, History, Currencies, Maturities
LIBOR stands for London InterBank Offered Rate, indicative average interest rate at which a selection of banks are prepared to lend one another unsecured funds on the London money market. There are 150 different LIBOR interest rates and is calculated for 15 different maturities and for 10 different currencies. Continue reading
Buyer’s Credit Rollover
Process to be followed for Buyers Credit Rollover from Existing Bank and Rollover from Other Banks and documentation required for each of this case. Article also provides details about regulation and other factors to be consider while doing rollover of buyers credit. Continue reading
Posted in Buyers Credit
Tagged Business, Buyers Credit, Capital good, Comfort letter, Finance, Import Finance, India, London Interbank Offered Rate, Updates, Working Capital
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
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
Useful links in relation to Buyers Credit
Buyers Credit Calculation Sheet, Current Exchange Rate, Future / Forward Rates of USD, EURO, GBP, & JPY. Relevant RBI Circulars in Relation to Forward Contract. DTAA, Withholding Tax, Income Tax Notification in Relation to Form 15CA, Form 15CB, Challan 281, Form 27Q and Filling Links / Format. Relevant RBI Circulars in relation to Trade Credit Continue reading
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
