BILLS OF EXCAHNGE RATE OF INTEREST
This query is : Resolved
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
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
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.
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.
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
- Opting our of sec 44AD
- LC charges in relation to Asset purchased should be Capitalised ?
- Multiple trade mark
- Transporter Declaration form
- Regarding TDS Applicability For Director Remuneration
- Regarding appeal to GSTAT
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Form 121 & TDS deduction
- Value of property in capital gain
- Copyright software
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
