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Creditors outstanding for more than 3 years

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Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2010 Dear Sir,

I would like to know, after how much period a Creditors outstanding balace has to writtenoff, If the Creditor is not claming the same for 3 years.

Thanks

Poonam

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

17 February 2010 Based on the company policy

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)

17 February 2010 The Law of limit specifies that any debt becomes time barred after 3 years. So, in case the creditor has not claimed the amount from 3 years, then the company is under no legal obligation to pay the amount. So, the company may write off the amount after the period of 3 years.

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