Deposits query

From where it has received & for what it is received ?

Is it for share application money ?

Please elaborate in detail .

All advances are not deposit
It is as per Deposit rule as per Companies Act 2013.

Source and purpose of receipt ?

First of All Advances are not exempted deposits ,it to be as per rule 2(1)(c) of AOD rules ,By the way amount to be appropriated towards good and services ,actual utilisation may go beyond 365 days... like warranty contract ( 5 Yrs ) where money recived should be appropriated towards such contract within 365 days...If you already mention in contract that such amount is for such purpose then as per view 365 days criteria will not bar it ...

advance cannot be deposit.

lets go to the intricate details .

1. iTS GOVERNED BY SECTION 73 TO 76 OF COMPANIES ACT 1956.

DEPOSIT ARE SHOWN IN BALANCE SHEET SEPERATELY ON THE LIABILITIES.

As per law ,money to money transaction Is deposit and all monies which business ows always shown in liabilities side ,its not relevant for Companies act compliance...

Chirag



balance sheet is governed by companies act since the querist has asked for company transactions.

Queriest originally asked how to Return the amount ? and money can be returned back within 15 days of expiry of 365 days ,else deposit provisions will trigger...

The contention is wrong that advance can't be deposit ...while it's exempted deposit ,read rule 2(1)(c) of deposit rules

When an individual pays an advance it can be deposit as such as governed by Sec 73 to Sec 75 of Companies Act 2013.