Hi
Director (Holding 40% Shares) in private limited co. working full time on salary basis.
Director salary was not paid during FY. Please suggust the provisions/treatment under Income Tax & Company Act.
1. Can we capitalise or transfer salary to share capital a/c of that director after deduction TDS.
2. Please suggust other treatment assuming company has liquidity probelm.
It will be advisable to pay the outstanding amount to the director by cheque and take from cheque towards share application money after following procedure for further issue of shares under Companies Act 2013.
| Originally posted by : P C Agrawal | ||
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It will be advisable to pay the outstanding amount to the director by cheque and take from cheque towards share application money after following procedure for further issue of shares under Companies Act 2013. |
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Thanks for your valuable advise.
But my concern is still open, if the company has liquidity problem and not able to pay by cash/cheque, how we clear this outstanding amount from books by end of FY.
Please suggest any other way or accounting treatment to clear that outstanding without effecting company liquidity(cash/bank).
It is not an issue. Your accounts person can easily plan it in such a way that both the cheques are passed by the Bank on the same day against each other without funds. It will be better if accounts of both the director and the company are in the same branch of the Bank.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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