Accounting

Dear Sir,

We have a doubt which is we have purchased services from SPR Publications Pvt Ltd, when we settle bills purchaser requested to give a cheque another company name i.e aditya broadcasting pvt ltd due SPR publications pvt ltd OD account is in negitive.

my questing is can we give cheque in favour of ADITYA BROADCASTING PVT LTD AGAINST BILLS BOOKED SPR PUBLICAITONS.

PLEASE ADVISE

Replies (5)

Take a written confirmation from ADITYA BROADCASTING PVT LTD for settlement of due of SPR PUBLICAITONS vide cheque no. and so on.

Yes... I agreed to Mr Manish...
It's a mutual understanding with SPR PUBLICATIONS AND ADITYA BROADCASTING.
THE CHEQUES WILL BE CREDITED TO ADITYA BROADCASTING AND A WRITTEN CONFIRMATION FROM SPR PUBLICATIONS IS ESSENTIAL.
On request from service provider SPR Publications , you issued cheque in the name of another company ( Aditya Broadcasting Pvt Ltd)

Are SPR going to replace bill - in Aditya company ?

You may mutually do anything and everything, but is this allowable for tax purposes ?

Section 40A(3) issue may arise.
Statutory Auditor may object
Tax auditor may report in Form 3CD

( in both companies)

This is objectionable.
Online payment is better. Pay to SPR and then SPR to Aditya. Why mess it up ??

eg. if you had taken loan of 50 lakhs from SPR and SPR requests you to repay directly to Aditya, is it okay ? Will you do it ?

All such things are prone to creating uninvited issues. If any substantial reason say name change of SPR to Aditya , it's okay But otherwise better to stay away from such request.
There are certain issues which need to be taken care off_____
This type of mutual settlement may be acceptable when there is a written agreement attested in front of a notary public on a bond paper.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
10 November 2026
FP&A Executive

Gujarat Guardian

Ankleshwar

CA Final

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details