Interest on moratorium of loan
This query is : Resolved
25 May 2020
Dear Sirs,
We have taken a loan from NBFC. As the lending institutions have been permitted to allow a moratorium of three months due to COVID 19, our lender has amortised the interest payable for Mar20 to Jun20. The Interest portion is added to the outstanding loan amount.
My query is:
1. What accounting entry should be passed.
2. Whether TDS is applicable in Interest portion. The lender had added the total Interest to loan outstanding.
Kindly advice.
We have taken a loan from NBFC. As the lending institutions have been permitted to allow a moratorium of three months due to COVID 19, our lender has amortised the interest payable for Mar20 to Jun20. The Interest portion is added to the outstanding loan amount.
My query is:
1. What accounting entry should be passed.
2. Whether TDS is applicable in Interest portion. The lender had added the total Interest to loan outstanding.
Kindly advice.
25 May 2020
1. Interest Expense - Dr.
Lender A/c - Cr.
2. No TDS needs to be deducted from Interest Amount
Lender A/c - Cr.
2. No TDS needs to be deducted from Interest Amount
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
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Non filing of I T Returns
- UDIN ISSUE
- Change Of Karta In Case of Death
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- 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
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
CAclubindia
