BILLS OF EXCAHNGE RATE OF INTEREST

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This query is : Resolved

SHIVAM JHUNJHUNWALA (Querist)

29 April 2021 SIR WHEN IS INTEREST CHARGED on bills of exchange

A) FOR TENURE OF THE BILL
B)AFTER TENURE GETS OVER AND BILL IS NOT PAID ..INTEREST IS CHARGED AFTER DUE DTAE UNTILL PAYEMTN IS MADE
C)FROM DATE DRAWN TILL BILL PAID

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

06 July 2024 Interest on bills of exchange is typically charged from the date the bill is drawn until it is paid. So, option C) "from date drawn till bill paid" is generally correct.

Here's a breakdown of how interest on bills of exchange works:

- **Date Drawn:** This is the date on which the bill of exchange is issued.
- **Date Paid:** The date on which the bill is settled or paid.
- **Interest Period:** Interest accrues from the date the bill is drawn (issued) until the date it is paid.

The accrual of interest on bills of exchange is based on the agreed terms between the parties involved. Typically, the terms of the bill specify the rate of interest and the period for which it applies (which is often from the date of drawing until the date of payment). If the bill is not paid by the due date, additional interest may be charged as per the terms agreed upon.

Therefore, option C) accurately describes when interest is charged on bills of exchange, from the date it is drawn until the date it is paid.

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