Query on buyers credit facility ecb 2

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Tridha Thakur

Finance Executive & Company Secretary

43 Points Posted on 20 January 2012

Dear Friends,

My Company has availed Buyers Credit facility from an International Bank within a period of 3 years.

Please clarify me whether 'ECB Return 2' must be filed to RBI via AD as per availing of BC/LC facilities by the company.

"ECB 2 - Return should be filled in for all categories of ECB. It should be submitted within 7 working days from the close of the month through the designated Authorised Dealer to the Director, Department of Statistical Analysis and Computer Services (DESACS), Balance of Payments Statistics Division, Reserve Bank of India, C-8/9, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051." If there is no transaction during a particular period, a Nil return should be submitted.

My company bankers are arguing that ECB 2 need not be filed with RBI (as per availment of BC Facilities) i.e ECB 2 not applicable.

Kindly clarify me whether they are right in their perception?

Regards

Tridha Thakur

Replies (3)

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

6092 Points Posted on 22 January 2012

Yes your banksers are correct.

Anuj

SkDash

CS (Member) CWA (Final)

625 Points Posted on 23 January 2012

Hi Tridha/Anuj

Thanks for Q and Ans. We are currently in the process of availing one ECB from London and by this post, i came to know the requirement of filing ECB 2 every month within 7th for the transaction of the last month.

We have filed form 83 and waiting for the Loan Number from the RBI.

Can you pl tell me, is there any other statutory requirement to be filed by us for ECB? Tenure is 5 yrs and amount > 5mn USD