Advance received in Ordinary Course vs. Deposits - MMJC

Deposit” includes any receipt of money by way of deposit or loan or in any other form by a Company, but does not include such categories of amount as may be prescribed in consultation with the RBI.

Further, Rule 2 (1)(c) of the Companies (Acceptance of Deposits) Rules, 2014, provides an inclusive definition of deposits. It clearly enlists the transactions that would not be considered as deposits.

In this article – Our Partner – Ms. Deepti Kulkarni has explained what is advance received in ordinary course of business in various scenarios!

The article was published in the Chamber of Tax Consultants Journal in the October Edition

https://www.mmjc.in/wp-content/uploads/2022/12/Advance-received-in-Ordinary-Course-vs.-Deposits.pdf