write off unclaimed balances


This query is : Resolved 

(Querist)
29 June 2008 how to proceed with the write off the unclaimed balances showing in a balance sheet as a refundable security/EMD
(I) if we write off the same after 3 years of completion of work as per 'Law of Limitation' then what is the remedy if the creditor lodge the claim after write off the same?
(II) If we write off it in profit and loss account then whether it is taxable or not and whether it is available for dividend or not?
(III) As per company law whether it is capital reserve or revenue reserve in both situation if the security retained for capital project or for contract of trading nature?

ashok garg (Querist)
29 June 2008 nil

Amit Bajaj (Expert)
30 June 2008 Please check on the law of limitation. If it crosses that, then it can be written of and it is grouped under other income.

It is very much taxable as the benefit has been taken in the earlier period when such expense are incurred in the form of capitalization or expense.

As per Company law it is revenue reserve only and available for dividend

03 October 2009 Hello, is this an old query still pending?????? plz send me a PM if yes.....

03 October 2009 Hello, is this an old query still pending?????? plz send me a PM if yes.....


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