Section 269ss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 Dear Sir,

Client has branch in U S and employees are travelling abroad and company will get foreign currency from one of the foreign exchange dealer for credit period of 60 days.

My question is, whether the foreign currency received in cash form exchange dealer is loan for section 269SS.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2014 if that is replayable after 60 days then yes it will be loan under sec 269SS.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 Dear sir

Its a normal credit period extended by the exchange dealer. how can it become a loan.

Any case law in this regard

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2014 exactly what is the purpose pls explain indetail...

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 Purpose of the currency is bought for giving it to employees, who are going abroad for work. Normal what all will do, they will go to foreign exchange dealer , buys the currency by giving Indian rupee, where as our case, we only buys foreign currency and payment in respect such currency will be paid after some times like 60 days as earlier mentioned. such credit given by exchange dealer amounts to loan or not is my question.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 March 2014 yes as per sec 269SS it fits in the definition of "Loan" even if it is for 60 days credit.

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