Dear All,
One of my friend faced a typical problem from Sales Tax dept of Karnataka.The problem is furnished below :-
In his companies Balance Sheet he shown unsecured loan Rs.5.00 Lacs and the said loan received through RTGS.The loan is existing more than 6 months, now the VAT dept are claiming that it is not a loan and as it is crosses 6 months then it will be treated as advance from customer ,therefore you have to pay the VAT on that.
Is it correct that if a unsecured load crosses 6months unpaid -- it to be treated as advance from customer.
Please note that wrongfully he has not provided Interest on that and as he has not provided interest TDS also not deducted.
Can anybody advice me what to do now ?
Regards
Jayanta
CAclubindia
