Advance to directors
This query is : Resolved
14 August 2013
sir .... i want to the treatment of advance given to directors on account of exps by pvt co in cash (exceeds Rs.20000 ) ... what will the treatment of that as per it act & and co act ..... ????
14 August 2013
as per it act if given in cash still it will not be disallowed as it is capital loan amount and will be later paid back by director.
as per co act it will be adjusted in directors loan a/c.
as per co act it will be adjusted in directors loan a/c.
14 August 2013
sir ... if it is given to directors for incurring exps ... for attending meetings &some other business exps. then ?
14 August 2013
then it is not loan it is advance for business purpose and not personal loan, even for reimbursement of exp for business purpose it will not be personal loan.
14 August 2013
1)it can be accounted as imprest advance
2)it will be okay if you have given amount as advance..but while booking expenditure if you pass expenditure in a single day more than 20000 it will be disallowed 40A(3)
2)it will be okay if you have given amount as advance..but while booking expenditure if you pass expenditure in a single day more than 20000 it will be disallowed 40A(3)
14 August 2013
Advance to director and later repaid is not an exp and hence sec 40A(3) is not attractable.
01 September 2014
There will be violation of section 2(22)(e) of the Income tax act and it will be deemed dividend and taxable in the hand of directors
02 September 2014
Advance given to meet expences may not create any problem with company act
Advance given to meet expences may not create any problem with company act
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Relief u/s Section 89
- Rent lease agreement
- TDS Challan Code
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
