Opinion on the following querries

Tax queries 269 views 2 replies

Advocate Dinesh Bisariya

service

26 Points Posted on 10 February 2016

I NEED EXPERT COMMENT ON THE FOLLOWING TOPICS

If a Limited Company received Rs.2,16,264.00 th: NEFT/RTGS on 17.12.2013 from XYZ Pvt Ltd Company and after some time pay back Rs.2,16,264.00 th: NEFT/RTGS on 28.03.2014 to XYZ Pvt Ltd Company. It means Limited Company used this money about 101 Days. After some time Limited Company raised the Sales invoice of Rs.32,596.00 on 19.11.2014 to XYZ Pvt Ltd Company. After some time Limited Company Write Off this amount as bed Debts. PL GIVE OPINION ON THIS TRANSACTION WHETHER IT IS CORRECT AS PER LAW. May treat this transaction as unsecured loan which was paid @ 5% interest P.M.in way of raising sales invoice.

Replies (2)

Mihir

Chartered Accountant

42 Points Posted on 10 February 2016

Hie Mr Dinesh,

I think that you have not represented the situation in a manner it should have been put on. However the two transactions i.e

1) Getting the money from the Pvt ltd Comapny and giving it back and

2) Raising a bill of sales and than showing it as bed debts

does not depict a link. You cannot show a unsecured loan of more than 2 lakhs for a bill of amounting less than 35,000. And also there should be proper provision of interest payable on unsecured loan as on march 14.

There should have been a provision as on march for the payment to be made in the next year.

Advocate Dinesh Bisariya

service

26 Points Posted on 10 February 2016

Mihir Sir,

Limited company paid as interest of Rs. 32596.00 by way of raising sales invoice (actualy Sold the goods) and later on write of the amount of sales invoice raised as bad debts

What will be happend pl tell me