PGBP-1.loan from relative of director,2.unrecognised PF
This query is : Resolved
CA Vijeta Verma
(Querist)
13 August 2010
Q1) is the loan taken from the relative of director(already debited in P&L A/c) is allowable expenditure for the purpose of PGBP income??
Q2)is employees contribution towards unrecognised PF & gratuity fund which is credited by employer to employees' A/c before due date is allowable expenditure??
in both cases if YES the under which section?as per vk singhania both are permitted..
Q2)is employees contribution towards unrecognised PF & gratuity fund which is credited by employer to employees' A/c before due date is allowable expenditure??
in both cases if YES the under which section?as per vk singhania both are permitted..
Ca Aashish Upadhyay
(Expert)
13 August 2010
Dear Sandhya
ANS-1 I would start with BIG" NO " because loan is not a revenue expenditure but a capital item. So any payment of Loan would not be a part of expenditure. However if the Loan is in accordance with sections 269S and T(as the case may be) than Interest paid or payable @ 12% would be an allowable expenditures.
ans -2 Only the employers contribution to PF as per the Provident Fund act is allowable expenditure.
ANS-1 I would start with BIG" NO " because loan is not a revenue expenditure but a capital item. So any payment of Loan would not be a part of expenditure. However if the Loan is in accordance with sections 269S and T(as the case may be) than Interest paid or payable @ 12% would be an allowable expenditures.
ans -2 Only the employers contribution to PF as per the Provident Fund act is allowable expenditure.
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