13 August 2011
In a partnership firm cash is needed for operating exp. which will be paid by firm in cash.Should firm issuse the cheque in the name of self or in the name of the person say X, who is sent by the firm to withdraw the money from bank? So that the no objection will by the I.T.Department.
13 August 2011
But bank manager say that a person who is sent by the partnership firm cheque must be in the name of that person,but in the case of partner go to collect cash from bank then it can be in the name of self, not in other case self cheque can be issused by the firm.
13 August 2011
But the I.T.O. will see the bank statement and finds that the cheque is in the name of third person which is shown in account statement issused by the bank and the ITO will treat it as loan. then what ? Now what is the actual banking rules say cheque must be issued by the firm in the name of self or third person who collect the payment on behalf of the firm ?
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