Bank cash credit limit & bank open cash credit limit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 August 2013
What is deffrance between Bank Cash Credit Limit & Bank Open Cash Credit Limit,
Can one company avail this both limit at time
Can one company avail this both limit at time
08 September 2013
Cash credit limit is against stock with collateral and can be used for purchase and sales of goods.
The open Cash Credit Limit is bank sections one Cash Credit limit with sub heads like
1) L/C
2) Bill Discounting
3) High Seas Sales
4) Packing Credit
5) Cash Credit
and so on and so forth
Now the limit sanctioned against each head can only be used against that particular head but once the same is converted to Open Cash Credit Limit in that case your overall limit is fixed and it can be used against any of the sub limit but the over all limit will remain same. Suppose you want to buy more materials and your limit is say 5 Cr. but other open limits are there then you can utilise those limits and exceed 5 Cr. under Open Cash Credit Limit
The open Cash Credit Limit is bank sections one Cash Credit limit with sub heads like
1) L/C
2) Bill Discounting
3) High Seas Sales
4) Packing Credit
5) Cash Credit
and so on and so forth
Now the limit sanctioned against each head can only be used against that particular head but once the same is converted to Open Cash Credit Limit in that case your overall limit is fixed and it can be used against any of the sub limit but the over all limit will remain same. Suppose you want to buy more materials and your limit is say 5 Cr. but other open limits are there then you can utilise those limits and exceed 5 Cr. under Open Cash Credit Limit
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- TDS Return Q1 FY 2026-27
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- EPF FULL & FINAL RULES IN 2026
- DIN reactivation
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
