Professional Documents
Culture Documents
Course Content
Stocks in Hands
Direct Import of Auto (exchange rates etc)
advantages/limitations
Local LC and its impact on Stock cost
Invoices to Customers
Afri Ventures
Dubai gives
Order to Foton
and makes the
payments
Foton
Manufactures
Vehicles and
ships them to
KNL Nigeria
and receives
money from
Afri Ventures
KNL Nigeria
sells and pays
back to Afri
Ventures Dubai
Disadvantages
Local LC
Advantages
Disadvantages
nvoices to Customers
Effects of Rebate / Refund : Increase in VAT & Income
Tax liability.
VAT, WHT, Income Tax application in Auto business
VAT : a tax on the amount by which the value of an
article has been increased at each stage of its
production or distribution.
nvoices to Customers
WHT : A withholding tax, also called a retention tax,
is a government requirement for the payer of an item
of income to withhold or deduct tax from the
payment, and pay that tax to the government.
Document requirements
Application Letter
Duly completed application form
Duly completed loan agreement form
Proforma invoice from Kewalram Nigeria Limited
6 months statement of account
Utility Bill i.e. PHCN, NITEL OR Water Rate bill
Means of identification i.e. Drivers license/ International Passport/ National ID
Card
1 Passport photograph
Letter of Undertaking to notify bank in the event of change of address, employer
or relocation abroad
when Exchange rate is volatile, you will do business in Naira at fixed profit
which may wipe out when repayment is done if exchange rate is falling
as you will spend more Naira for the same USD monthly payment
Local Borrowings