Form 23ACA - Related party transaction

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This query is : Resolved

Pavan Jain S (Querist)

29 January 2009 If a Private limited Company has obtained unsecured loans from its directors and their relatives, whether the amount so received during the year should be disclosed as 'Gross value of transactions with Related Parties'in Form 23ACA [Head II Point 7].

If there is running account of director in the books of the Company and the account incorporates both the business and loan trasanctions, how the gross value to be disclosed in FORM 23ACA shold be arrived at?

Whether the outstanding amount as at balance sheet date should be taken or the total amount accepted as loan during the year should be disclosed in the form?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

29 January 2009 You have to sumup all the credits for the related parties like salaries credited, any other sums credited and loan received and cumulative value has to be shown in Form 23ACA [Head II Point 7]

If there is a running account you have to take the total credits to that account irrespective of repayment made and that cumulative value has to be shown in Form 23ACA [Head II Point 7]

You have to show the amount calculated as above and not the closing balance. The reason being certain people will square up the transaction to NIL at the year end and they will start fresh transactions at the commencement of next year.

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