Frequent payment to the directors
This query is : Resolved
08 May 2013
IN OUR PRIVATE LTD. COMPANY FREQUENTLY PAYMENTS ARE BEING MADE TO THE DIRECTORS.
HOW TO ACCOUNT THE ABOVE
1.SHALL IT BE SHOWN AS LOANS MADE TO DIRECTORS(OR)
2.SHALL IT BE ACCOUNTED AS DRAWINGS(IT SHOULDNT BE ACCOUNTED AS DRAWINGS SINCE ITS NOT A PROPRIETORSHIP BUSINESS.
PLEASE ANSWER THE QUESTION
ITS URGENT
PLEASE
HOW TO ACCOUNT THE ABOVE
1.SHALL IT BE SHOWN AS LOANS MADE TO DIRECTORS(OR)
2.SHALL IT BE ACCOUNTED AS DRAWINGS(IT SHOULDNT BE ACCOUNTED AS DRAWINGS SINCE ITS NOT A PROPRIETORSHIP BUSINESS.
PLEASE ANSWER THE QUESTION
ITS URGENT
PLEASE
Guest
Guest
(Expert)
08 May 2013
If given as remuneration then debit as a remuneration
can not be shown as loan otherwise it will be treated as deemed dividend u/s 2(22)(e) of income tax Act
can not be shown as loan otherwise it will be treated as deemed dividend u/s 2(22)(e) of income tax Act
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