As per Section 297 of the Companies act there are 2 conditions in which this section is not applicable
1) if the sale and purchase is at current market prevailing rate for cash
My Query is that is the sale and purchase is made by cheque at current market prevailing rate than also this section does not apply to that transaction.
13 November 2011
The main logic behind section 297 is to avoid book entry adjustments. So pmt can very well be made by cheque instead of cash. Same provisions apply.
CAclubindia
