Escrow Account
M.Aravinda Kumar (Finance) (83 Points)
13 October 2007
Any can explain in detail about Escrow Account in a Bank?
7 Replies
CA.Saibaburao Nanduri
(Chartered Accountant)
(3847 Points)
Replied 13 October 2007
Dear M.Aravinda Kumar !
Use an Escrow account for money that you manage, but don't own.
The money may be due to you in the future, or it may go to another party in the future.
Escrow accounts are neither assets nor liabilities-- they are not included on your balance sheet at all.
Use Escrow accounts for:
Rental deposits
Gift certificate and layaway funds
Client money which you are managing temporarily
Taxes that you have collected but not yet paid, that must be kept in an escrow account
saran kumar
(student)
(145 Points)
Replied 31 October 2007
escrow means an instrument or a written agrement
Ramakrishna
(Financial Executive)
(438 Points)
Replied 06 November 2007
Dear Friends,
First of all, would you mind explain who is entitled to open such an account? What are the general pre requisites? Tthe procedure for opening an Escrow A/c.
With regards,
Rachana Gadage
(Account Executive)
(136 Points)
Replied 08 November 2007
Hi,
In US market, Escrow a/c is required for payment of Property tax. From EMI of House Loan co is transfering that tax amount to Escrow a/c. This account is open only in case of House Loan
Ramakrishna
(Financial Executive)
(438 Points)
Replied 09 November 2007
Dear Gadage,
You are mentioning one of the utilities of the Escrow A/c. Please explain how the account in the Indian context?
Please post your response.
Recent Topics
- 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
- ITC reversal in GST 3B
Related Threads
CAclubindia
