Personel expenses V/s Co. Expenses
This query is : Resolved
Mandip Bhattarai
(Querist)
20 February 2008
If any legal expenses for a case which was related to director's case but the company has deducted TDS on same and filed its TDS returns now while conducting audit we found that it was dorector's case with state bank...
now the account department is telling that we will transfer it to directors loan A/c.
As the returns are filled and TDS has been deducted by company can we transfer it to his loan A/c.
Director is person who is not liable to deduct TDS...
the legal firm is also appearing before court for another case which is of the company.
now the account department is telling that we will transfer it to directors loan A/c.
As the returns are filled and TDS has been deducted by company can we transfer it to his loan A/c.
Director is person who is not liable to deduct TDS...
the legal firm is also appearing before court for another case which is of the company.
20 February 2008
IF THE EXP. RELATE TO CURRENT YEAR ,YOU MAY NOW DEBIT LEGAL EXP. PAID BY THE COMPANY TO DIRECTOR'S PERSONAL ACCOUNT.
BUT THEN IT IS LOAN TO A DIRECTOR BY COMPANY. IF IT IS PRIVATE LTD. COMPANY , THERE ARE NO RESTRICTIONS ON SUCH LOANS.
BUT IF IT IS A PUBLIC LTD. COMPANY SEC 295 APPLIES FOR COMPLIANCE.
SO IT IS BETTER TO TAKE CHEQUE FROM DIRECTOR FOR THE GROSS AMOUNT OF THE LEGAL EXP. AND CREDIT LEGAL EXP.
SINCE TDS WAS ALREADY DEPOSITED AND RETURN IS ALREADY FILED IT IS NOT WORTH TO GO BACK AND FILE REVISED RETURN AS THE TDS AMOUNT MAY NOT BE VERY SUBSTANTIAL.
R.V.RAO
BUT THEN IT IS LOAN TO A DIRECTOR BY COMPANY. IF IT IS PRIVATE LTD. COMPANY , THERE ARE NO RESTRICTIONS ON SUCH LOANS.
BUT IF IT IS A PUBLIC LTD. COMPANY SEC 295 APPLIES FOR COMPLIANCE.
SO IT IS BETTER TO TAKE CHEQUE FROM DIRECTOR FOR THE GROSS AMOUNT OF THE LEGAL EXP. AND CREDIT LEGAL EXP.
SINCE TDS WAS ALREADY DEPOSITED AND RETURN IS ALREADY FILED IT IS NOT WORTH TO GO BACK AND FILE REVISED RETURN AS THE TDS AMOUNT MAY NOT BE VERY SUBSTANTIAL.
R.V.RAO
Mandip Bhattarai
(Querist)
21 February 2008
Dear Sir, it has sbstantial amount more than 1.5 lac and now question arises who will issue Form 16 to the Professional.
Mandip Bhattarai
(Querist)
21 February 2008
Dear Sir, it has sbstantial amount more than 1.5 lac and now question arises who will issue Form 16 to the Professional.
CA. GOPAL SONIKA
(Expert)
21 February 2008
As the Company has deducted TDS, the TDS certificate has to be issued by the Company as the party should not suffer for wrong done by the Comapany. The Company may collect cheque of the amount of legal exps from the Director and pass the following entry
Dr Bank
Cr Legal Exps.
Dr Bank
Cr Legal Exps.
21 February 2008
The same amount of legal expenses can be recovered from director and company can issue the tds certificate
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