1. ECB Form (Application Form for Buyers Credit /Supplier Credit)
2. Buyers Credit Cost Calculation Sheet
3. Current Exchange Rate
4. Future / Forward Rates of USD, EURO, GBP, JPY
Monthly Archives: June 2011
WHT (Withholding Tax) on interest on Buyers Credit
What is WHT (Withholding Tax) ?
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.
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RBI Trade Credit (Buyers/Suppliers Credit) Circular Extract
New Article: RBI Circular : Trade Credit – New Regulatory Framework
Updated on 19 October 2016
Trade Credits refer to the credits extended by the overseas supplier, bank and financial institution for maturity up to five years for imports into India. Depending on the source of finance, such trade credits include suppliers’ credit or buyers’ credit. Suppliers’ credit relates to the 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 overseas bank or financial institution. Imports should be as permissible under the extant Foreign Trade Policy of the Director General of Foreign Trade (DGFT).
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Procedure for Buyers Credit in India
Further to my earlier article, Importer will have to follow below procedure and internal checks to avail buyers credit.
Buyers Credit – Meaning, Process, Cost & Regulations
Buyer’s Credit refers to loans for payment of imports into India arranged by the importer from a bank or financial institutions outside India. Based on letter of undertaking of Importer’s bank, Overseas bank credits the Nostro of the importer’s bank which in turn uses the funds to make payment to the Suppliers bank against the import bill.
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Buyer's Credit & Supplier's Credit 