Negotiable instruments act
This query is : Resolved
11 April 2017
respected sir/mam,
i couldnt understand the phrase: a note payable to the maker is not a promissorynote unless it is endorsed by the maker.
can u please help me?
i couldnt understand the phrase: a note payable to the maker is not a promissorynote unless it is endorsed by the maker.
can u please help me?
12 April 2017
It's like you can't write a promissory note saying that "I promise to pay myself Rs ..... on the day....."
But if you endorse it in somebody's name (transfer it to somebody) then it becomes a promissory note as you have to pay the amount to somebody else.
So a note will not be called as promissory note if it is payable to maker him/herself. But when he/she endorse it (transfer it) to somebody else's name then it becomes promissory note.
i hope it will be clear. Let me know if you have further questions.
But if you endorse it in somebody's name (transfer it to somebody) then it becomes a promissory note as you have to pay the amount to somebody else.
So a note will not be called as promissory note if it is payable to maker him/herself. But when he/she endorse it (transfer it) to somebody else's name then it becomes promissory note.
i hope it will be clear. Let me know if you have further questions.
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
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- EXPORT COMMERCIAL INVOICE HSN CODE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- ITR 4 and Bank transactions
- ITDS U/S.194T of Firm
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
