Advance Against Retention Money

 


Advance Against Retention Money


Advance Against Retention MoneyIn case of some exports, in particular capital goods and project exports, buyer withholds a small part of the invoice value towards guarantee of performance. If this balance amount is payable within one year from the date of shipment of goods/services, banks advance against such retention money at concessional rate of interest. The Maximum period of advance is 90 days. However, if the retention money is payable after a period of one year from the date of shipment of goods, such advances are to be treated as deferred payment advances. In such cases, banks do not extend concessional interest rate. The rate of interest will be as determined by the bank.

 

Import General Manifest (IGM)

 

Importance of Bill of Lading

Introduction to this web site.

Is Airway bill a documents of title?

Is Customs House Agents (CHA ) required to be appointed mandatory?

Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?

Is ON BOARD CERTIFICATE required for LC negotiation

What is Rummaging

How does First Appraisement system of import customs clearance procedures work?

How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work?

How does Wire transfer work in international business?

Who has to obtain GST registration in India?       

Does GST registration number of my firm change time to time in India?

Is GST registration required for a public sector undertaking?

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Procedure for Central Excise Clearance Under Claim of Rebate

Customs procedures for Costa Rica Export

Registration required to export from Costa Rica

Import Customs processes in Costa Rica

Import Registration and import Licence procedures in Costa Rica

How to export from Bolivia?

How to Import to Bolivia?

How to import to India from Bolivia?

 



Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers