Can Director pay for goods purchase behalf of OPC/Private limited company ?

Can Director pay for goods purchase behalf of OPC/Private limited company ?

Read more at: https://www.caclubindia.com/forum/create_message.asp#

Replies (2)
Quick Summary
Yes, a director can pay for goods on behalf of an OPC or private limited company, provided they are appropriately reimbursed. However, it's crucial to ensure the company's own purchasing processes are followed to avoid scrutiny. If the director is involved in the business, this could potentially be classified as a Related Party Transaction (RPT) under Section 188, requiring careful consideration and adherence to regulations.

Yes, if reimbursed him appropriately.

If OCB and ALM Criteria complied then no issue ,else it may questioned that why company is not purchasing itself while buying through director ? If director is in the business it may be RPT u/s 188...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
29 September 2026
Work at home

Lottery.sambad.tv

Bhopal

Others

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details