A document issued by a bank (on behalf of the buyer or the importer), stating its commitment to pay a third party (seller or the exporter), a specific amount, for the purchase of goods by its customer, who is the buyer. The seller has to meet the conditions given in the document and submit the relevant documents, in order to receive the payment. Letters of credit are mainly used in international trade transactions of huge amounts, wherein the customer and the supplier live in different countries.
Can You Answer These?
- When can i register for CA Foundation after 12th standard exam? asked by shruti singh, 11 months ago.
- What is unabsorbed depreciation? asked by shruti singh, 11 months ago.
- Will I get a good package (7–8 lpa) in job if I pass CA final after multiple attempts? asked by shruti singh, 11 months ago.
- Can we take GST input on uniform provided to workers in manufacturing company? asked by Prashant, 11 months ago.
- Should I do MBA after completing CA? asked by Prashant, 11 months ago.