Section 269ss
This query is : Resolved
03 September 2019
Mr. X is a Partner in XY & Co.
A fixed asset worth Rs. 80,000/- is purchased, whose payment is done in the following manner :
1. Mr. X paid Rs. 20,000/- via his Debit Card &
2. Balance Rs. 60,000/- was paid via Debit Card of Mr. X's Relative (Say 'Mr. Z', who is not a partner in XY & Co.)
So Mr. Z loaned Rs. 60,000/- to XY & Co. but funds were directly paid to the seller of fixed asset using Mr. Z's Debit Card. The loan of Rs. 60,000/- is shown in books by passing a Journal Entry.
Later the firm XY & Co. has also repaid Rs. 60,000/- via Account Payee Cheque to Mr. Z
QUERY :
Are the provisions of Section 269SS violated while taking loan of Rs. 60,000/- from Mr. Z ?
A fixed asset worth Rs. 80,000/- is purchased, whose payment is done in the following manner :
1. Mr. X paid Rs. 20,000/- via his Debit Card &
2. Balance Rs. 60,000/- was paid via Debit Card of Mr. X's Relative (Say 'Mr. Z', who is not a partner in XY & Co.)
So Mr. Z loaned Rs. 60,000/- to XY & Co. but funds were directly paid to the seller of fixed asset using Mr. Z's Debit Card. The loan of Rs. 60,000/- is shown in books by passing a Journal Entry.
Later the firm XY & Co. has also repaid Rs. 60,000/- via Account Payee Cheque to Mr. Z
QUERY :
Are the provisions of Section 269SS violated while taking loan of Rs. 60,000/- from Mr. Z ?
03 September 2019
Not violated as payment and repayment are through banking channel.
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