L C

This query is : Resolved

Kapil Jain (Querist)
Follow

12 July 2010 What is the procedure of LC ?
We paid a party through LC, Bank Charge Bank charges.
And interest on the same.
What happened if party get it discounted and if not.

CA SMR

CA SMR (Expert)
Follow

12 July 2010 The LC is opened by your banker in favour of a third party, if the third party who may be a your vendor, demands the same.Against LC 25 % margin deposit is retained by the banker.Normally LC has a tenure of 6 months.Once it matures,margin deposit and interest accrued thereon are released and creited to your bank account.Tenor of LC is usually delivery at site or usance whichever is earlier,for a period upto 90 days.LC amount will be debited to your bank account on maturity.

Kapil Jain

Kapil Jain (Querist)
Follow

13 July 2010 Thanks but What happene if party get it discounted.

Kapil Jain

Kapil Jain (Querist)
Follow

13 July 2010 Thanks but What happene if party get it discounted.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

John Ravindran Moses

ABHISHEK AGRAWAL

Prashant Kotecha

Sanjay Ratnani

Vinod Patil

Subscribe Now

L C

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA