Emd

This query is : Resolved

Guest

Guest (Querist)

26 April 2012 Can anyone please explain me the concept of EMD?! There is a working provided to me showing 3 columns.. Chq deposit column, Coal value nd EMD forfeited.

Mihir Doshi

Mihir Doshi (Expert)
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26 April 2012 EMD - Earnest Money Deposit.

It is a kind of deposit that is collected in a contract from the contractee for duly performance of contract.

You can replace contract with agreement or any similar terms.

Suppose, If Government announces road project and thereby asking for Tender.On announcement of tender with any party, Government ask for EMD for its specific perfornamce.

Guest

Guest (Querist)

26 April 2012 Sir I am doing audit of WCL..they are taking EMD from purchasers of coal from them.The contract has to be performed by WCL for sale of coal then is it valid to take EMD from the purchasers for the lifting of coal..WCL is the subsidiary of Coal India limited.

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Mihir Doshi

Mihir Doshi (Expert)
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26 April 2012 Dear Disha

It depends upon the agreement and nature of transaction. They may take EMD depend upon the business norms.

Thanks
Mihir Doshi