Dear All,
We are 100% Subsidery of a Korean Company.
We are proceeding our ECB activities under Automatic Route.
In this regards, please let us know:
1. Can our parent Company in Korea, make Guarantee for us to avail the ECB from Exim Bank Korea.
2. Can we pay the Gurantee fee to our parent Company, will be a part of 'All in Cost'.
3. If any balance remains in our ECB funds after making all our capex, what will be the use for the Balance Funds in ECB.
Please provide us the relevant clause in FEMA/ECB Master Circular in this regard.
Your early reply will be highly obliged.
Best Regards
Pradeep kaushik
Korean Subsidiary Seeks Clarification on ECB Guarantees and Cost Inclusions under Master Circular 12/2012-13 A subsidiary of a Korean company inquires about External Commercial Borrowings (ECB) under the Automatic Route. They seek guidance on whether their Korean parent company can provide a guarantee for an ECB from Exim Bank Korea and if the guarantee fee paid to the parent company is part of the 'All in Cost.' Additionally, they ask about the permissible use of remaining ECB funds after capital expenditures. Responses suggest consulting the Master Circular 12/2012-13, but the inquirer finds it insufficient and requests further clarification, with a promise of a detailed response by the following Monday. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
