Advance from customer

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 April 2011 The company manufacturing activities are yet to be started say 5-6 months later. Can it receive advance from customer?

Any legal issue under Income Tax or other law.

02 April 2011 YES, COMPANY CAN RECEIVED ADVANCED FROM CUSTOMER AGAINST SUPPLY ORDER

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 April 2011 Dear Mr. Navin

I have doubt that the company has not set up factory yet?

03 April 2011 Hi,

You can go ahead, but make sure about the Accounting entires.

Not Setting up the Factory cannot be taken as a point for not receiving Advances from Customers, if the company is confident about running the Show.

Regards
CA. LOHITH.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 April 2011 Thanks Mr. Lohith


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