Suppose company A purchases goods from company B. As per terms,company A requires a bank garantee for this purchase. So,in his bank,he has a bank guarantee. Now my question is whether this bank guarantee is needed to show as contingent liability in the books of A Ltd? Please help me.
Menu
Letter of credit
Replies (2)
yes certainly.
but why? i mean we are providing a liability and if we fail to pay,then there will be automatically payment of that liability.
there is certain obligation and certain outflow of assets.
Recent Topic
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
Related Topics
CAclubindia
