Sec 269ss to chitfund co
This query is : Resolved
01 June 2019
Hi Everyone
We are Regsitered Chit Fund Co and we are aCCepting the Monthly Chit Subscriptions in Cash(In Excess of Rs.20000) and Paying the Prize Money to the Subscribers Compulsary through Cheque only My Q is as follows
1 As we are aCCepting Chit Subscription through Cash wheather Covered by SeC 269SS is applicable
As per SeC 269T "loan or deposit" means:
▪ any loan or deposit of money which is
▪ repayable after notice or
▪ repayable after a period and,
▪ in the case of a person other than a company, includes loan or deposit of any nature;
As Per my My Knwoldege the Monthly SubsCription paid by the subscribers is not Loan or Deposit to Company just we are Collecting the money from the specified group members and paying the Prize money to One member among the Specified group only. So at the end of the day Co Doesnt have any Deposit or Loan in his hands.
Please Guide
We are Regsitered Chit Fund Co and we are aCCepting the Monthly Chit Subscriptions in Cash(In Excess of Rs.20000) and Paying the Prize Money to the Subscribers Compulsary through Cheque only My Q is as follows
1 As we are aCCepting Chit Subscription through Cash wheather Covered by SeC 269SS is applicable
As per SeC 269T "loan or deposit" means:
▪ any loan or deposit of money which is
▪ repayable after notice or
▪ repayable after a period and,
▪ in the case of a person other than a company, includes loan or deposit of any nature;
As Per my My Knwoldege the Monthly SubsCription paid by the subscribers is not Loan or Deposit to Company just we are Collecting the money from the specified group members and paying the Prize money to One member among the Specified group only. So at the end of the day Co Doesnt have any Deposit or Loan in his hands.
Please Guide
Amol S Joglekar
(Expert)
01 June 2019
Can you please tell me what accounting entry you pass when you receive CHIT money from individual person?
Amol S Joglekar
(Expert)
01 June 2019
This will attract 269SS......loan OR deposit OR "specified sum."
01 June 2019
Sir This is not Loan or Deposit taken for their Individual Interest
01 June 2019
SHRIRAM CHITS MAH LTD a reputed Public Ltd Chit Fund Company is already taking the Chit Payment in Cash for Kind Reference
Amol S Joglekar
(Expert)
01 June 2019
I know.
Even Kurie companies....(Another name for chit fund) follow the same practice of accepting cash
Even Kurie companies....(Another name for chit fund) follow the same practice of accepting cash
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