No Dues Certificate from a Chartered Accountant
A No Dues Certificate provides formal, third-party confirmation that a specified liability — a loan, a vendor account, a statutory dues obligation — has been fully settled with nothing outstanding, and it is frequently required before a loan can be closed, a property transaction registered, or a tender application accepted. Justsetu LLP verifies the underlying records and issues No Dues Certificates in the format required by the bank, buyer, or authority requesting it.
What Is a No Dues Certificate?
A No Dues Certificate is a document, often certified by a Chartered Accountant, confirming that an individual or business has no outstanding dues — financial, statutory, or contractual — as on a specific date, in respect of a specified relationship (a loan account, a vendor/supplier account, or a specific statutory obligation such as GST or PF dues).
Common Uses
Closing a bank loan or releasing collateral once the loan is fully repaid; property sale/transfer transactions requiring proof that no dues are outstanding against the property or seller; vendor or supplier account settlement confirmation; tender submissions requiring proof of no outstanding statutory dues; and, in some cases, employee full-and-final settlement documentation.
Documents Required
- Loan account statement or closure letter (for loan-related certificates).
- vendor/supplier ledger and payment records.
- GST, PF, or ESIC compliance status and challans, where statutory dues are being certified.
- any correspondence or settlement agreement relevant to the dues being confirmed.
Process & Timeline
- Identifying exactly which dues/relationship the certificate needs to confirm, and the format required by the requesting party.
- Verifying underlying records — bank statements, ledgers, payment receipts, or statutory filings — to confirm the “nil balance” or “no dues” position.
- Drafting the certificate with a clear statement of what has been verified and as of what date.
- Generating the UDIN and issuing the signed certificate, typically within a short turnaround once verification is complete.
Why Justsetu LLP
We only certify what we’ve actually verified against source documents — a No Dues Certificate is only as reliable as the records behind it, and it’s not something we sign off on trust.
Frequently Asked Questions
Most commonly for loan closure and collateral release, property transactions, vendor account settlement, tender submissions, and confirming statutory dues are cleared.
Depending on the context, it may be issued by the lender/bank itself (for loan closure), by the vendor/counterparty (for account settlement), or certified by a Chartered Accountant based on verification of records, particularly where a third-party attestation is required.
They serve a similar purpose for loan accounts, but a bank’s closure letter is issued directly by the lender, while a CA’s No Dues Certificate is an independent certification based on verifying the bank’s records and account statements.
Yes, a CA can certify that, as of a specific date and based on available records, no GST, PF, ESIC, or other statutory dues are outstanding, which is often required in tender submissions or business transfers.
Typically a short turnaround once the underlying account statements, ledgers, or statutory filing records needed for verification are provided.
Tender authorities want assurance that the bidder does not have unresolved statutory or financial obligations that could affect their ability to perform the contract.
In many property transactions, especially where a loan or society dues are involved, a No Dues Certificate confirming the property/seller has no outstanding dues is required before registration.
No, a No Dues Certificate specifically confirms a nil balance; if any amount remains outstanding, the certificate cannot state “no dues,” and the certifier would need to reflect the actual position accurately.
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