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Amount withdrawn by Directors

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(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?
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CA. B.SRINIVASULU

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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.
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