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January 2013

A. P. (DIR Series) Circular No. 58 dated 14th December, 2012 Trade Credits for Imports into India – Review of all-in-cost ceiling

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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This Circular states that for trade credit upto maturity period of three years, the present all-in-cost ceiling of 350 basis points over six months LIBOR for respective currency of credit or applicable benchmark will continue upto 31st March, 2013.

The all-in-cost ceiling will include arranger fee, upfront fee, management fee, handling/processing charges, out of pocket and legal expenses, if any.

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