Board resolution for Trade/Mobilization Advances

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..... Board resolution for Trade/Mobilization Advances
Query (Issue) Started By: - satbir singhwahi Dated:- 7-12-2021 Corporate Laws / SEBI / LLP
Companies Law
An unlisted public company which has .....

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..... given mobilization advances to its contractors for various ongoing projects, which is subsequently deducted from the amounts payable to the contractor. I would like to mention that there is separate .....

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..... criteria for approving a contractor's request for such advance and deciding the amount to be advanced, where only the upper ceiling limit has been decided upon in the contract. The company is ded .....

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..... ucts TDS on such payments under Income tax. Now, the company denies this to be a loan and also states that no separate board resolutions are required for granting such amounts. The company argues tha .....

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..... t since the project itself has been approved in board meetings, there is no further requirement for board resolutions for granting such advances. Can this be classified as a loan? Is the companies .....

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..... ' contention to treat this as an adjustable advance is correct, which section mandates passing of a formal board resolution in a meeting?
Discussion Forum - Knowledge Sharing .....

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