Cheque deposit procedure
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 May 2012
is dis a good practice to deposit the cheque of big amount directly to director account and then transfer it to co. a/c for d purpose of internal checks.
wat can b the possible benefit or loss by following above procedure to co.
rpy urgently....
wat can b the possible benefit or loss by following above procedure to co.
rpy urgently....
09 May 2012
How can a director deposit a cheque in the name of the Company in his / her personal account? How can a banker honour this cheque in his / her personal account?
Secondly, there is a big risk in following this procedure, because as per the Companies act, a company cannot give loan to a director. In the instant case, depositing of cheque in director's account, will tantamount to loan to director and hence, contravention of the Companies act. Further, the amount of cheque after being deposited in director's account, may come back to the Companies account.
In my view, this is absolutely rubbish procedure followed by the Company.
Secondly, there is a big risk in following this procedure, because as per the Companies act, a company cannot give loan to a director. In the instant case, depositing of cheque in director's account, will tantamount to loan to director and hence, contravention of the Companies act. Further, the amount of cheque after being deposited in director's account, may come back to the Companies account.
In my view, this is absolutely rubbish procedure followed by the Company.
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
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- ITC EXCESS CLAIM + RCM NOT PAID...BOTH FOR FY 2020-21......PAID IN FY 2024-25....EFFECT
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
