Companies act 2013

Co Act 2013 340 views 5 replies
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49 Points Joined September 2013

Dear All,

Suppose i owe Rs.50lacs to party 'A' and party 'B' owes me Rs.48lacs.

A and B are related parties.

Is there any provision In the companies act 2013 restricting me from settling the payables to party 'A' by adjusting receivables from related parties of party 'A' ?

 

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On 10 June 2014 at 16:43 Report
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there is no such provision as in my view ... but still suggest u for better accounting treatment dont do these type of set off, better square off the accounts separately..

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On 10 June 2014 at 17:40
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49 Points Joined September 2013
Thank you for your reply Ankit. incase of doubtful or non recovery from party B...can I secure my interest by setting it off against its related party to whom im indebted??
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On 10 June 2014 at 17:46
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From accounting prospective it will be wrong...

 

either take a letter from both party if they are ready for these transaction..

 

because in this case Party A can send u legal notice for their payment dues...

 

ya you too can send legal notice to party B for their dues and so on the process will move...

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On 10 June 2014 at 17:50
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49 Points Joined September 2013
Ok ty Ankit for the insight
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On 10 June 2014 at 17:52
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your welcomes dear..... :)

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On 10 June 2014 at 17:53


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