hello
A partnership firm has given unsecured loan of 12L to a party last year.In the current year the loan has not been repaid.the a/c stands credited by 12L as closing balance.The loan is also in the nature of interest free loan.
Can it be an audit point and what are the issues that are to be considered.
Thanks in Anticipation.
You will have to be a bit more specific in your query. You have written that the amount stands credited, which means your party is the debtor and has taken the loan? Is the party you are referring to a company (pvt ltd or ltd). In case it is a partnership or a proprietorship concern then there is no requirement of audit, so no case of an audit issue will arise. In case the party is covered under tax audit, then clause 18 of Form 3CD will need to list this transaction, but still, there cannnot be audit issue as such. Yes, the ITO in the past have raised issues of foregone interest, etc, but in most cases have been overruled on appeal. If you need to discuss this further in details, then please reply at my blog at empowertheloser.com where I have posted this reply as well for future discussion thread.
sir partneship firm also required for audit.
Even Proprietorship concern also can fall under Audit
According to me, In 3CD you have to mention this Unsecured Loan under Clause 24.....
Pleae if someone can give me the detailed note on an unsecured loan and tell me the exact meaning of it. CFLA Andrew Lehman
CAclubindia
