Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Current A/c of CA Firm

Others 554 views 3 replies

SSG

1936 Points Joined March 2007

Hi Friends,

Whether a CA in practice has to open a current account of his proprietorship firm in the bank?
Or saving account should be opened in the firm name?

Replies (3)

Sanjeev Jain

Chartered Accountant

922 Points Joined November 2007

Hie,

See there is no compulsion in law to open current account in a bank, if you feel free to trnsact your business earning in a saving account you can go ahead with that but one thing should be keep in mind while transact through the bank that you have to keep your client money in a seprtate bank account if it doesn't belongs to you i.e. if you are engaged in any type of work for him like any type of process outsourcing or Portfolito management etc.

MAHENDRA KUMAR BAGRECHA

FCA

1402 Points Joined March 2009

Originally posted by :SSG
"	Hi Friends, Whether a CA in practice has to open a current account of his proprietorship firm in the bank? Or saving account should be opened in the firm name?	"

Hi, I agree with the view of Sanjeev