Payment by directors on behalf of co. for property

Save Share

This query is : Resolved

RICHA MAKHIJA (Querist)
Follow

18 March 2016 Can Directors Pay for property on behalf of Pvt. Ltd. co. and later registry of property under name of Pvt, Ltd.Company is done.
please provide with reference to law and its treatment in accounts.

c.bakshi

c.bakshi (Expert)
Follow

19 March 2016 yes, director can give unsecured loan to the company but the payment should be made by banking channel. the money stands in the credit of the director paying the amount of money for property

Message likes : 1 times

RICHA MAKHIJA

RICHA MAKHIJA (Querist)
Follow

19 March 2016 Sir payment to seller of property is made by personal bank a/c of director..... can that property be registered under name of company by passing an resolution or by MOU.to give authorization to pay on behalf of co...????

c.bakshi

c.bakshi (Expert)
Follow

21 March 2016 NO, Director with Banking channel transfer such money in the bank account of the company and thereafter you can process the payment. Directors are also entitled to interest.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now