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Preferential creditors
Accountancy
"Owing to govt for telephone electricity and water" Will this comes under preferential creditors?
Answers (1)
A preferential creditor is a creditor receiving a preferential right to payment. Their claims rank higher in priority than those of ordinary/unsecured creditors. All revenues, taxes, cesses & rates payable to the government or local authority will be treated as preferential creditors provided that it must become due within 12 months before the date of winding up.
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