A director has taken a personal loan from an NBFC.
The same has been given to the private limited company due to shortfall of funds and also to lower the interest cost.
Monthly EMI has to be paid to the NBFC.
Pvt Ltd Company pays a monthly payment to director, which in turn is paid to NBFC.
My question is :
1) What will be the treatment of loan from director in companies books?
2) Will company be liable to pay interest? If yes, what is the maximum quantum?
3) Will TDS be applicable on the amount paid to director?
4) If a promoter not holding shares has given money to the company in similar fashion, what would be the treatment?
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