CC A/c in Bank

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CA Kapil Popat (Querist)
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18 April 2010 Can a practising CA firm whether a sole proprietorship or partnership open a CC A/c with Bank?? I have mostly seen Current Account of CA Firms not CC A/c. If it can open CC A/c then what would be given as hypothecation? Because in CC A/c normarlly business units hypothecate their stocks.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 April 2010 YES, MR. KAPIL, A SOLE PROPRIETORSHIP OR A PARTNERSHIP FIRM CAN OPEN A CC A/C AGAISNT HYPOTHECATION OF THIER BOOK DEBTS I.E DEBTORS.

CA Kapil Popat

CA Kapil Popat (Querist)
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18 April 2010 thank you bansal sir, but have u come across practically with such firm having CC A/c??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 April 2010 I have not.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 April 2010 DEAR CHACKRAPANI JI,
I AM NOT UNDERSTANDING WHAT U WANT TO SAY BY "I HAVE NOT "?
PLEASE CLARIFY

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 April 2010 I have not come across chartered accountants firm's maintaining CC A/cs with banks.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 April 2010 I ALSO HAVE NOT COME ACROSS SUCH INCIDENT.

kartik_somu

kartik_somu (Expert)
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19 April 2010 i have also not come across any such incident

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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20 April 2010
I AGREE WITH ALL OF YOU.
OUR GROUP COMPANY A/C WITH BOB , I HAVE LOOK AFTER ALL CC LIMIT OF OUR COMPANY. I HAVE DISCUSSED ABOUT IT WITH OUR BRANCH CHEIF MANAGER AND MANAGER-LOANS & ADVANCE REGARDING IT GENREALLY. THEY TOLD IF CA FIRM A/C IN THE BANK HAVING GOOD TRANSACTIONS SINCE MORE THAN 2 - 3 YEARS. THEN FIRM CAN APPLY ON CC LIMIT AGISNT HYPO OF BOOK DEBTS, BUT LIMIT AMOUNT MAY NOT BE HIGH , IT MAY BE UPTO 5 LACS ON THE BASIC OF ACCOUNT TRANSACTION. ACCORDING TO THEM , THERE IS NO PROVISION IN BANK DENYING CA FIRM OR CA PROPERITISHIP TO OPEN CC A/C.
PRACTICALLY I HAVE ALSO NOT COME ACROSS ANY SUCH INCIDENT. BUT IT MAY BE .

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2010 THANKS MR BANSAL FOE SHARING YOUR EXPERIENCE.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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20 April 2010 The querry has opened one area of short-term finance from the banks by the chartered accountancy firms.

Thanks all who participated in the querry.

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