Advance from customers used for other purposes
This query is : Resolved
26 June 2013
Suppose a Private limited company which is a Trading company has taken certain Amount say Rs 2500000 as advance to supply goods.But it does not supply the goods and ultimately the deal gets cancelled.In the meanwhile company uses that money to trade in goods with other customers.Is there any violation of any law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
If there can be any violation, then by which time it should return the money after cancellation to avoid any violation of law?
27 June 2013
There is No Violation of any law but Violation of Trust. You Shall refund the money upto stipulated date of delivery otherwise customer can file a suit under sec 420 of CrPC or as per your agreement.
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- HOUSING LOAN ISSUE
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- Taxability of Partnership firm for FY 2025-26
- LIC maturity claim whether taxable
- Carriage Road Act, 2007 read with Carriage by Road Rules, 2011
- Sec 44ada applicable only or both
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Same demand raised for original as well as rectification request return
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
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
