Advance paid to director

This query is : Resolved

Ramana Rao (Querist)
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08 December 2011 an advance is paid to director of a pvt ltd co over a period of time
can it be adjusted as consultancy fee to him in the current year?
if so what is the tax implication?

Nirpendra Singh

Nirpendra Singh (Expert)
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08 December 2011 it depends on the circumstances if during the last year we have entered in any contract with the director for any consultancy service and bcoz of any reason it could not be provided by him , and the same is availed by co in c.y. than the same can be claimed as consultancy charges ,, but the condition is contract and the director should have requisite skills.

Ramana Rao

Ramana Rao (Querist)
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08 December 2011 there is no contract last year but contract
is there in current year
can the advance paid earlier can be adjusted
for the contract of this year
yes the director has all the requisite qualifications
please also opine on tax implications
ramana

Ramana Rao

Ramana Rao (Querist)
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11 December 2011 there is no contract last year but contract
is there in current year
can the advance paid earlier can be adjusted
for the contract of this year
yes the director has all the requisite qualifications
please also opine on tax implications
ramana