Amount withdrawn by Directors
This query is : Resolved
CA Ysil Karunai
(Querist)
03 February 2009
In a private Ltd company,A Director is withdrawing amount of Say Rs. 10,000 per month and it is treated as his Drawing A/c.
1. whether this treatment is correct?
2. How it should be Treated as per Companies Act?
3. Which section speaks about this?
1. whether this treatment is correct?
2. How it should be Treated as per Companies Act?
3. Which section speaks about this?
CA. B.SRINIVASULU
(Expert)
03 February 2009
You should be very careful.
If your director is being paid salary first credit salary and allow him to withdraw.
If without any credit balance if he withdraws then it becomes deemded divided and you are liable pay dividend tax alongwith tds.
If your director is being paid salary first credit salary and allow him to withdraw.
If without any credit balance if he withdraws then it becomes deemded divided and you are liable pay dividend tax alongwith tds.
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