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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)
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17 February 2010 Based on the company policy

Amol Gopal Kabra (CA,CS,DISA)

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