Decide whether the following transactions will fall within the ambit of "deposits" as defined under the Companies Act, 2013, quoting relevant provisions of the Act : (c) Will your answer be different, if the security dep
CS Professional · Advanced Company Law and Practice · PYQS · June 2017
Decide whether the following transactions will fall within the ambit of "deposits" as defined under the Companies Act, 2013, quoting relevant provisions of the Act : (c) Will your answer be different, if the security deposit earned an interest at the rate of 6% per annum ?
Answer & Explanation:
In case, the security deposit earns interest at 6% per annum, that again violates the requirement of being non-interest bearing security deposit and hence it shall be treated as deposit. [Rule 2 (c)(x)]
Topics: Acceptance of Deposits by Companies
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