Can any one explain to a layman like me about Guarantee and Counter Guarantee
How You ascertain the same,The manner of Disclosure and What Guidance note says on such disclosures
Please explain in simple terms and in detail giving examples
sivaram (Asst Mgr-Taxation) (6918 Points)
21 January 2011Can any one explain to a layman like me about Guarantee and Counter Guarantee
How You ascertain the same,The manner of Disclosure and What Guidance note says on such disclosures
Please explain in simple terms and in detail giving examples
tme s limted,bt drms r unlmtd
(Mba ( fin.) Ca final Student)
(257 Points)
Replied 21 January 2011
Bank gaurantee is a gaurantee which we make in favour of party who hs given us work,and we make this gaurantee to ensure that we will complete the work with in limited period ..Bank gaurantee are also of different type like perfomance bank gaurantee ,,earnest money deposit...In case of our default the party can enforce this bank gaurantee and can get claim...
Where as Counter bank is made in favour of bank against the above bank gaurantee to indemnify the bank against the losses and claim which bank give to the party...
rgds
Kundan Singh
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
