Commencement Of Business Certificate

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sangita (Querist)
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19 December 2008 Hi frnz,
dis is regarding Commencement Of Business Certificate (COC). One of our client's bank account has been credited with share application money. They have one query that whether they can use the share application money for capital exp like purchasing AC, fRIDGE etc etc. They have not yet received COC. Its still in process.. can u pl comment upon this doubt????????
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Regards
Sangita

Ravikumar.G

Ravikumar.G (Expert)
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19 December 2008 They can use that amount for capital expenditure purpose.

If in case the amount is received from Foreign investor (NRI) that should be used only for the purpose of capital expenditure not for the working capital purposes. (As per FEMA).