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Corporate Law

12 August 2020

deposits
negative list given in the module of ICAI of deposits
those negative list are not eligible for taking deposits or are not necessary to comply the the given conditions and rules in the company law what is the basic concept for the negative list

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3 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 12 August 2020

Negative list.... means
Are you asking about "AMOUNTS NOT CONSIDERED AS DEPOSIT"...?

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Yami Soni (145 Points)
Replied 13 August 2020

Yes yes

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 13 August 2020

Company can take deposit only if it's comply with rules and regulations as prescribed by Company Act and deposit Rule.

Negative list I.e AMOUNTS NOT CONSIDERED AS DEPOSIT is a list of those transaction which can't be considered as deposit.

So, Company can do that transaction without complying of any rule relating to deposit.

ex. (vi) any amount received by a company from any other company;
it's in negative list. So, No need comply deposit rule for this transaction.

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