Adjustment of bg against interest or principle
This query is : Resolved
29 September 2012
if any interest chargeable Advance given to contractor is secured by BG and he is not able to pay the bothe interest and principle. Then whether at time of enashment of BG, we can adjust the interest before principle
e.g. Advance to Contractor is Rs 5.00 Crore and Interest Outstanding is Rs 2.00 Crore and BG is of 5.00 Crore. and after adjusting the BG aginst Intertest and remaning principle, can we go to the court for the unrealised part of advance.
And can we charge interest on unrealised part of advance?
e.g. Advance to Contractor is Rs 5.00 Crore and Interest Outstanding is Rs 2.00 Crore and BG is of 5.00 Crore. and after adjusting the BG aginst Intertest and remaning principle, can we go to the court for the unrealised part of advance.
And can we charge interest on unrealised part of advance?
30 September 2012
It will depend upon the purpose for which you have taken the bank guarantee. Adjusting some thing UNILATERALLY in TALLY or some such software has no meaning. The purpose for which you have taken the bank guarantee is very important and deciding factor. If interest is covered in the said bank guarantee.... choice is with you to adjust the way you want. (In case of advances, our bankers first adjust it with interest and then to principal.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Sales return eway bill
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- GST ON DAMAGED GOODS
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
