Advance from customers used for other purposes
This query is : Resolved
26 June 2013
Suppose a Private limited company which is a Trading company has taken certain Amount say Rs 2500000 as advance to supply goods.But it does not supply the goods and ultimately the deal gets cancelled.In the meanwhile company uses that money to trade in goods with other customers.Is there any violation of any law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
27 June 2013
There is No Violation of any law but Violation of Trust. You Shall refund the money upto stipulated date of delivery otherwise customer can file a suit under sec 420 of CrPC or as per your agreement.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Confusion around Form 26QB fields
- Sale of property furniture sale
- Applicability of Ind As to associate of associate
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
