Director resigns during the year. The pvt ltd co has received a loan from him. And it stays outstanding as at year end. Does it attract AS 18?
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 19 January 2010
It attracts As-18 relationship at anypoint of time during the year.Disclosure necessary
sriram
(CA)
(281 Points)
Replied 19 January 2010
Thanks for your reply
any case law or section tat you can quote reg dis
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 19 January 2010
no case law or section refer AS-18 which is a disclosure AS
sriram
(CA)
(281 Points)
Replied 19 January 2010
So it means a disclosure to be made in Notes with the amount of loan rite?
CA munjal
(articled clerk)
(100 Points)
Replied 20 January 2010
Related party transaction is to be disclosed only when following conditions are satisfied at the time of transaction
(1) Related party relationship
(2) Related party transaction
So if the loan was given before resignation then it needs to be disclosed.
KUSHAL AGRAWAL
(CA Final Student)
(128 Points)
Replied 26 May 2010
disclosure necessary only if relationship exist on date of receipt of loan , year is irrelevant
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