alleryStart learning →An advance for warranty services is excluded if the service period is at most?
ATrade practice or five years, lower
BFixed ten years, no exception
CFixed three years, no exception
DFixed seven years, no exception
Answer & Solution
Correct answer: A. Trade practice or five years, lower
The service period must not exceed common business practice or five years from acceptance, whichever is less.
Keep practising Acceptance of Deposits by Companies
Browse all Acceptance of Deposits by Companies questions for CA Inter, or explore more Law topics.
Related questions
Where must a company inviting public deposits upload the circular?A deposit circular stays valid for how long after the financial year closes (at most)?Who signs the circular copy sent to the Registrar under Rule 4(5)?On whose authority and name must a deposit circular be issued?An eligible company's public deposit circular is issued in which form?A section 73(2) company can send its member circular by which mode?After issuing the circular, what may a company not reserve a right to do?Who alone is entitled to brokerage on deposits procured for a company?