Sectiom 58a

Dear friends,

A private construction company has received advances from customers regarding a particular project. Later that particular project was cancelled & closed. The same advances were not returned for 2yrs. Will these be considered as deposits and attracts sec 58A provisions of companies Act. If yes please explain the reason for considering such advances as deposits. Part of Advances was repaid to one of the customers though.

Thanks in Advance.

Replies (1)
It may be treated as deposit us 58 a if sufficient reasons could not be provided for retention of amount.

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