30 March 2012
We have been requested by our customer to issue letter of credit.
a. The Customer has said that Usance interest has to be borne by us. b. The L/C is for 90 days. c. if discount the L/c at sight, we will have to bear the discounting charges?
In such a case, will Usance Interest also arise in addition to discounting charge?
30 March 2012
Yes, because discounting charges will be the charges for procedure and other activities of discounting & interest on discounting will be the interest amount that have to pay on amount given by bank to your customer.
CAclubindia
