PVt.LTD

This query is : Resolved

survesh (Querist)
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15 May 2010 Hi,

Please Say me about some important points while accounting for PVT.LTD Company.How Much cash can been withdrawn and what are the limit of Cash Expenses.Please Say which AS is applicaple for Logistics Company.IS TDS applicable on Director Salary.Director can withdrawn drawings from Company.

Can Credit cards Statement accounted in Pvt.Ltd Company.Credit cards are in Name of Directors.Please Guide some because our Partnership firm is to be converted in to Pvt.Ltd.

Regards

Survesh

sivadas chettoor

sivadas chettoor (Expert)
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16 May 2010 Dear Survesh,

There is no law relating to the cash holdings or the limits on expeneses. The limits are self imposed and are matters of prudence in financial magt. Keep in mind the provisions of Section 40A(3) of the IT act 1961. Directors cannot withdraw like partners of a firm. They can take agreed remuneration or commission etc. TDS is applicable if commission is paid. If salary to director is paid as an employee, TDS applicable to salary is attracted.Almost all As are applicable except to the extent provided in the companies act and the AS itself.

siva208@yahoo.com

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 May 2010 AGREE WITH EXPERT

DEEPIKA GOEL

DEEPIKA GOEL (Expert)
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16 May 2010 First of all, I want to say Mr. Survesh be relax. The way you are asking your query, it seems that you are too tensed.

All the points has been resolved by Mr. Sivadas. Remaining one is related to credit card issue. You can book the expenses which has been paid by credit card but bills should be in the name of the company. Otherwise you can show that the expenses has been incurred by directors on behalf of the company or you can say reimbursement of expenses.

As far as the accounting is concerned for company, it would be same as in case of firm. But you have to take concern of statutory compliance and Provisions of the Companies Act, 1956 like in presentation of balance sheet and profit and loss account.