Saj Nair (Account Director) 18 April 2012

Providing a legal guarantee-any assistance please.

Hello there

Just wondering if anyone here may be able to assist with a query on providing some sort of guarantee for advance payments received from a buyer in India.

I am based New Zealand and currently have started exporting goods to India. My terms of trade include a 10% deposit when the Indian buyer places the order and another 30% when goods are on the vessel and the remaining when copy of documents are sent to the buyer. One of my buyer in India has currently requested me to provide him some kind of guarantee document in India to protect them as a precaution. He wants me to produce this document during each leg of the payment schedule.

I currently have an Indian OCI(overseas citizenship of India) and have land and residential holdings in India. Hence I am wondering if the guarantee I offer can be a notarised document stating I have received advance payment from the buyer etc.

Any suggestion on this topic will be very much appreciated.

Regards
Saj Nair

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3 Replies

adv. rajeev ( rajoo ) (practicing advocate) 18 April 2012

It does not require notarised stamp paper, just you issue cash receipt for having received advance payment from the buyer.

Saj Nair (Account Director) 18 April 2012

Thank you very much for he reply. I will try that option. However from my last converation with him, the buyer is looking at something enforceable in India. Since my company is registered in New Zealand, he did not seem very convinced.

Maybe I can give him a cash receipt and a guarantee it at a personal level as well. And since I have a tax code etc in India that might help build a bit of confidence for him too..