Post dating invoices
There is no exemption from payment of stamp duty on a bill of exchange if it is a cheque.I need to know which date should I use as posting date, the invoice date or the due date?
How is it perceived if I just post the invoices received in Feb 2014 as 31-jan-2014 to avoid making journals?In Brazil, the drawer may seek damages in Justice if their cheque is cashed in before its due date, according to the jurisprudential orientation of the Superior Court of Justice, as per Summary No. Under the clearing rules of the Canadian Payments Association, a post-dated cheque cannot be cashed prior to the date written on it. However all the court rulings missed looking into relevant sections of law.If a Canadian financial institution inadvertently accepts and processes a cheque before the due date, the cheque writer may ask his or her financial institution to return the amount until the day before the cheque should have been cashed. Section 68 of Indian Stamp Act declares that a person who draws a post dated cheque and the person who presents a post dated cheque for payment will be liable to be fined Rs. The definition of a cheque in Negotiable instrument act as well as in Negotiable Instruments Act is - that a cheque is always made payable on demand.Please join our friendly community by clicking the button below - it only takes a few seconds and is totally free.You'll be able to ask questions about accountancy, tax and audit or chat with the community and help others.Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country.
A Canadian bank, for example, is not supposed to process a post-dated cheque and if it does so by mistake, the cheque writer may ask his or her bank to correct the error.
In the United States and the UK, post-dated cheques are negotiable instruments and can be drawn upon at any time, while in India post-dated cheques are not payable until the date written on the cheque.
In Bangladesh, under the negotiable instruments act, 1881 section 21C A promissory note, bill of exchange or cheque is not invalid by reason only that it is anti-dated or post-dated.
Give it some days for the post office to actually deliver the invoice to the customer, give the customer some time to process the invoice into A/P.
In the end, with an invoice date of April 25th, customer will only have a few days to actually pay the invoice (30 days after invoice date).
It is not difficult to understand that a post dated cheque is not payable on demand.