Margin in bank guarantee
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 August 2010
I want to know, what does a margin % mean while availing bank guarantee from financial institution,what is the purpose of margin and how is it calculated? Please provide me with an example.
15 August 2010
in case the bank, while issuing guarantee asks the client to deposit some money as a counter security, the same is called margin money.
Let us take an example where a bank stipulates in the limit sanction letter that BG for Rs. 10000 shall be issued against margin of 25% by way of fixed deposit. Then client has to make deposit of Rs. 2500 and afterwards bank shall take risk of issuing BG of Rs 10000.
Let us take an example where a bank stipulates in the limit sanction letter that BG for Rs. 10000 shall be issued against margin of 25% by way of fixed deposit. Then client has to make deposit of Rs. 2500 and afterwards bank shall take risk of issuing BG of Rs 10000.
Message likes :
5 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Sale of Equity shares for Purchase of Residential Property
- ECO SUPPLY REPORTIONG IN GSTR-1
- TDS PROCEDURE ON SALE OF IMMOVABLE PROPERTY BY NRI
- Payment to foreign customer
- Non issue of e way bill
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
