Menu
Payment made on behalf of supplier of the company to the creditor of supplier company
One of the our client company has purchased some material from its supplier. Supplier of the company has issued an standing instruction letter to the Company to make payment to their creditors on their behalf. Accordingly my client has paid the money to third party as per instruction letter of the supplier. Does such arrangement is allowed in income tax and other government regulations. Please quote some case laws or notification if available.
Replies (1)
Yes. It is OK. Not a problem. But take ledger confirmations. This is allowed for trading assets or liabilities. Same cannot be done for loan repayment transactions.
Recent Topics :
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
- Any faculty recommendations for latest batch recor
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
Related Topics :
CAclubindia
