company Law Query

A Director of a private limited company took 100000 rs as loan from Mumbai HO of a company and later on He incurred some expenses like salary, R&M in delhi Branch of the company...

So Now the ques is can the director adjust his loan with the same expenses and what are the compliances involved!!

Replies (1)

Dear Anshul,

If the expenses in Delhi are incurred for the Company then it can be adjusted against the loan...

As far as Compliances are required, since it is a Private company nothing much just the Borad has to approve this adjustment in the Board Meeting..Further the information should be disclosed as a foot note to Balance Sheet in terms of AS-18, RELATED PARTY DISCLOSURES..

AUDITOR SHALL MENTION THE FACT IN THE TAX AUDIT REPORT NOW THIS WAS MY QUERY WHICH I HAD POSTED ON TAX FORUM WHETHER SEC 269T GETS ATTRACTED IN THIS CASE(i:e Repayment of Loan otherwise than by A/c payee Cheque/Draft) - I M NOT SURE ON THIS.........

But if the Director is also the shareholder in the company(with 10% or more shares) then Sec 2(22)(e) comes in picture & It will be treated as Dividend to the extent of the reserves of the company.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details