Export of goods
This query is : Resolved
09 January 2012
is there any limit on trade discount in case of export of goods?
RAMESH KUMAR VERMA
(Expert)
10 January 2012
After shipment of goods, the exporter may submit the export bill to its bank for discounting/ purchase. This bill discounting facility may be a sub-limit to packing credit or may be a separate limit depends on the banks sanctioning authority.
In bill discounting, bank buys the export bills (i.e. bill of exchange/promissory note) before it becomes due for payment. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill till it is due for payment.
Read the link:
https://www.rbi.org.in/scripts/ECMUserView.aspx?Id=30&CatID=10
https://www.eximguru.com/exim/reserve-bank/fedai-rules/rules-2-export-transactions.aspx
https://business.gov.in/importexport/procedureexport.php
if you have any query regarding the captioned subject ask ...
In bill discounting, bank buys the export bills (i.e. bill of exchange/promissory note) before it becomes due for payment. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill till it is due for payment.
Read the link:
https://www.rbi.org.in/scripts/ECMUserView.aspx?Id=30&CatID=10
https://www.eximguru.com/exim/reserve-bank/fedai-rules/rules-2-export-transactions.aspx
https://business.gov.in/importexport/procedureexport.php
if you have any query regarding the captioned subject ask ...
10 January 2012
is there any limit on trade discount to be provided in case of export of goods????
10 January 2012
is there any limit on trade discount to be provided in case of export of goods????
RAMESH KUMAR VERMA
(Expert)
12 January 2012
it depends on agreement between buyer and seller before the consignment.
regards,
regards,
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
