Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Directors remuneration payable to be converted as unsecured

2350 views

Save Share

Join Us Follow Us Add as Source

Bhaskar reddy

employee

28 Points Posted on 08 February 2012

Please suggest me

we have to pay monthly remuneration 3,00,000/-to our one ofthe director.we have booked remuneration & paid tds also.we have to pay from jan'11 to jan'12 nearly 35 lakhs. This total amount tobe converted as a unsecured loan received from director?

is it correct, please help me.

bhaskar

Replies (1)

Kolluru Krishna Murty

Partner

327 Points Posted on 09 February 2012

There is nothing wrong in converting the salary payable to Unsecured Loan,provided other formalities like Resolution of the Board,filing necessary returns with ROC,necessary letter from the Director requesting the same is followed.

You may please also consult your CS for required formalities.

This would also be considered as capital(Subordinated Loan) by bankers for financing.

kkm