A is the director and shareholder in private company. He has been paying few service providers of company from personal bank account and credit card monthly. He pays around five lakhs annually for above expenses and that's shown as director's loan in company account. The amount is paid back to him in regular intervals and remaining amount around 40k carry forward to next year. This carry forward amount is shown as loan from director under short term borrowings in audit report. This is an unsecured loan and A receives no interest from company.
Please reply if the company should file DPT 3 for director's loan as per new notification. Thank you.
CAclubindia
