TaxTMI 
TaxTMI 
Non-resident guarantee for domestic fund based and non-fund based facilities
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.... ] Borrowing and lending in Indian Rupees between two residents does not attract any provisions of the Foreign Exchange Management Act, 1999. In cases where a Rupee facility which is either fund based or non-fund based (such as letter of credit / guarantee / letter of undertaking / letter of comfort) or is in the form of derivative contract by residents that are subsidiaries of multinationa....
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.... to FCNR(B)/NRE account. However, in case the liability is discharged by payment out of Rupee balances, the amount recovered can be credited to the NRO account of the non-resident guarantor. * General Permission is available to a resident, being a principal debtor to make payment to a person resident outside India, who has met the liability under a guarantee. * In cases where the liability is ....
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....ding, 11th floor, Fort, Mumbai - 400 001 so as to reach the Department not later than 10th day of the month following quarter to which the data pertain to. [ deleted vide A.P. (DIR Series) Circular No. 05 dated June 09, 2022 ] Facility of Credit Enhancement [ As Per para 20 of FED Master Direction No.5/2018-19 dated 26.03.2019 ] The facility of credit enhancement by eligible non-....
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....the principal amount involved; * On invocation of the credit enhancement, if the guarantor meets the liability and if the same is permissible to be repaid in foreign currency to the eligible non-resident entity, the all-in-cost ceilings, as applicable to the relevant maturity period of the TC/ECB, as per the extant guidelines, is applicable to the novated loan. * In case of default and if the ....