Dear Sir/Madam,
Thanks in advance to all , i have some question about transferable letter of credit transaction. we plan to purchase goods from China supplier and sale goods to Hong Kong buyer under transferable letter of credit. Hong Kong buyer will open transferable letter of credit in favor of us for $ 100000 and same letter of credit will transfer to China supplier for $ 75000 ( $ 25000 our margin ) and Bill of Lading will be prepared Consignor would be China Supplier Name and consignee will be To order and notify party will be Hong Kong Buyer ( in Bill of lading it’s not showing our Name any ware ) but we will raise the invoice for $ 100000 in name of Hong Kong Buyer ( we will receive Invoice for $ 75000 from our Supplier ) Payment also we will receive through our bank for $ for 100000 but our banker will credit to our account only $ 25000 ( our margin amount as said above ) balance amount they will send to Supplier account ( $ 75000 ) this is our transaction . Now my question is , could we take as a sales turnover of full invoice value ( here $ 100000 ) or we have to take only our margin value ( here $ 25000 ).
Thanks
Anand N M