Hello friends i need some clarification regarding verification of loans against fixed assets. Whether the WDV of Fixed assets should always be equal to or more than O/s amount in respect of loan. The problem is mainly posed due to charging of high depreciation as per IT rates. Or can we rely on the valuation certificates. If any other way please throw some light on this subject.
3 Replies
Aashish Dinanath Tripathi
(Articled Assistant and NCFM(CMDM))
(233 Points)
Replied 28 November 2009
Hi there,
THe valuation certificate at the time of grant of loan should be your base.
There is no such rule to match the o/s balance with with the value of the asset.
But its an industry practice to do so.
Moreover periodic valuation certificates are required our firm follows a require ment of a certificate every 3 years for such loans
The value of the asset as per that certificate should be matched by the loan balance.
apurva badaya
(ca final)
(75 Points)
Replied 04 December 2009
What all things we have to see while checking the vouchers in a bank audit? and what are foreclosure charges and inspection charges?
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
