Advances to director
This query is : Resolved
18 December 2009
How will the advances paid to director treated ?
Is there any way we can advice an accounting treatment in which the directors can withdraw money from the company without showing it as a loan ?
What is the limit to remuneration of directors ?
How are the personal expenses of directors borne by the company dealt ?
Is there any way we can advice an accounting treatment in which the directors can withdraw money from the company without showing it as a loan ?
What is the limit to remuneration of directors ?
How are the personal expenses of directors borne by the company dealt ?
19 December 2009
1. If it is a closed held company then it will be treated as dividend and taxable in the hands of director.
2. If done so; it is known as accounting fraud.
3. In closly held company, you can give remuneration which is suitable according to the working of the company.
4. Personal expenses of directors can't be borne by the company.
However; if resolution is passed you can give certain allowances to the directors.
2. If done so; it is known as accounting fraud.
3. In closly held company, you can give remuneration which is suitable according to the working of the company.
4. Personal expenses of directors can't be borne by the company.
However; if resolution is passed you can give certain allowances to the directors.
19 December 2009
Thank you Sir.
19 December 2009
Agree
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
- TDS 194-T applicability
- Tds on commission charges
- GST ITC REVERSE
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Applicability of GST on Salary Reimbursement Component
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- New GST registration for new place of business.
- Regarding Applicability of Tax Audit u/s 44AB
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
04 September 2026
Accounts Executive
Hema Yashwanth & Associates
Chennai
B.Com
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
08 September 2026
Semi-Qualified Assitant
Subrahmanyam & Sivudu CA Firm
Hyderabad
CA Inter
View Details
22 September 2026
Account Assistant
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
View Details
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
CCI
Pro
CAclubindia
