hello friends
Can any body tell that whether personal libility of a director can be paid by the company as repayment of his unsecured loan or as director's remuneration?
pls explain with resons
thanks
CA Richa
CA Richa Anand (CA in Practice) (31 Points)
03 September 2015hello friends
Can any body tell that whether personal libility of a director can be paid by the company as repayment of his unsecured loan or as director's remuneration?
pls explain with resons
thanks
CA Richa
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 03 September 2015
You can pay personal liability of the directors , but later on director must pay to the company for such amount.
If you will pay them remuneration then you have to deduct TDS from that amount.
You can pay Imprest to them for the repayment of amount & later on you can adjust with some adjustments,
Regards
Piyush Tanwar
Mobile - 9717468521
Email - capiyushtanwar91 @ gmail.com
CA Richa Anand
(CA in Practice)
(31 Points)
Replied 03 September 2015
bt Piyush cant we treat it as a repayment of loan, which has been received by the company from the director earlier?
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 03 September 2015
No, you can't treat it as repayment of loan directly.
You should route it through Imprest A/c for avoiding any legal constraints in future.
Regards
Piyush Tanwar
Mobile - 9717468521
Email - capiyushtanwar91 @ gmail.com
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