Charge Creation
This query is : Resolved
05 June 2010
Hi Everybody. My question is can a Company create a charge on future assets i.e. assets yet to be acquired by the Company?
05 June 2010
AGREE. WITHOUT OWNING ASSETS YOU CANT CREATE CHARGE AGAINST IT.
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
05 June 2010
Agree with the opinion of the above experts. Only in case of rotating assets, future liability can be created. Not offices etc.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- 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
