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Are bus loans deposited into a bank acc of company taxable?

Tax queries 798 views 4 replies

Dear Madame / Sir,

Q1. Suppose Om Enterprises (Proprietorship Company) take a business loan from a "Finance Company" called Pawan Finance of Rs.10,00,000/-...........Once the Rs.10,00,000 is deposited into the current account of Om Enterprises, then what type of "Journal Voucher Entry" will get passed in Tally. Will Om Enterprises, have to pay any kind of direct tax or indirect tax on it?

Q2. Suppose a private limited company planning to raise capital through sale of its shares, the share capital is raised and the shareholders money comes into the account, then what type of "Journal Voucher Entry" will get passed in Tally. Will the private limited company have to pay any kind of direct tax or indirect tax on it?

Regards,

Francis

Replies (4)
no tax on any of the monies raised in above examples. journal entry in case 1:- cash a/c will be debited and loan a/c will be credited. journal entry in case 2:- cash a/c will be debited and share capital a/c will be credited.

In neither of the cases tax has to be paid. 

Entry for 1)

Bank A/c --- Dr

To Loan Ac

Entry for 2)

Bank A/c --- Dr

To Share Capital A/c (FV)

To Security Premium (Premium)

Yes the above answers are perfectly right. Praveen sir's answer is more precise.
According to me When Proprietor company pay the interest on loan then TDS is apply if limit exceeds Rs.5000/-


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