Aarthi.P
asked about 3 years ago
If a Private company has advance received from customers for sale of goods/ services outstanding.,(ie neither sales/ service booked or amount returned to customers) , for a period greater than 365 days., what is the implication with reference to Acceptance of deposits( Sec 73-76) of Companies Act 2013?
Thanks for the reply,I want to know what should be done from compliance point of view and the penal consequence in this case.,eg interest payment ,whether Return of Deposits should be filed in such cases also, etc.
HIMANSHU
answered about 3 years ago
1. Any amount received in the course of or the purpose of the business for the following:- a. As advance for the supply of goods or provision of services provided such advance is appropriated against supply of goods or provision of service within 365 days from the receipt of such amount, b. As advance received in connection with consideration for property under an agreement or arrangement, c. As security deposit for the performance of the contract for supply of goods or provision of services. d. As advance received under long term projects for supply of capital goods. If any amount received under clause (a), (b) and (d) becomes refundable due to the reasons that the company accepting money does not have necessary permission or approval to deal with the goods or services then the amount received shall be deemed to be a deposit after the expiry of 15 days from the date they become due for refund.
megha
answered about 3 years ago
hello, here is the answer of your query > Section 73 provides certain amounts which would not be considered as Deposits which includes one of the below mentioned point. **Any amount received in the course of or the purpose of the business as advance for the supply of goods or provision of services provided such advance is appropriated against supply of goods or provision of service within 365 days from the receipt of such amount,** *************** thus, as per your question concerned, the answer for your question would be that amount received by Private Company, from customers for sale of goods/ services outstanding.,(i.e. neither sales/ service booked or amount returned to customers) , for a period greater than 365 days., be considered as Deposit.
Shreedhar Sutar
answered about 3 years ago
Hi Aarthi.p Deposit includes **any receipt of money by way of deposit or loan or in any other form**, by a Company. However Section 73 provides certain amounts **which would not be considered as Deposits** which inter alia includes below point. **1. Any amount received in the course of or the purpose of the business for the following:-** a. As **advance for the supply of goods or provision of services** provided such advance is appropriated against supply of goods or provision of service **within 365 days from the receipt of such amount,** b. As advance received in connection with consideration for property under an agreement or arrangement, c. As security deposit for the performance of the contract for supply of goods or provision of services. d. As advance received under long term projects for supply of capital goods. If any amount received under clause (a), (b) and (d) becomes refundable due to the reasons that the company accepting money does not have necessary permission or approval to deal with the goods or services then the amount received shall be deemed to be a deposit after the expiry of 15 days from the date they become due for refund. Thus looking at the above provisions the answer for your question would be that amount **would be considered as Deposit.**
