MARGIN IN THE FORM OF FDR TOWARDS PERFORMANCE B/G
This query is : Resolved
CA Sanjay Baheti
(Querist)
03 September 2010
One of my client has given Performance Bank Gurantee of Rs.115000/- to supplier in year 2000-01 taken from Bank against which the bank has taken 10% margin in the form of FDR i.e. Rs.11500/- Now in books still is standing.I asked the reason from my client then he explained to me that the Original Bank gurantee was not returned till date from supplier as the same was lost from them till the bank is not ready to realise the said FDR. now what to do in books to remove this entry after keeping in mind accounting concept & also from taxation point of view.
Please reply urgently & thanks in advance.
Please reply urgently & thanks in advance.
CMA Ramesh Krishnan
(Expert)
08 September 2010
Generally Bank gurantee having validity period, if the validity period expires the BG not having any value, so please check the validity period and ask bankers to close the FDR and get the money
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