Directors formed a Pvt. Ltd. company but during pre-incorporation period and initially during post-incorporation period directors made payments in cash for various expenses for an amount exceeding Rs. 20,000 in a year but not exceeding Rs. 20,000 through single payments for and on behalf of company. Whether any violation is done by the company U/s 269SS? If not then how to account it in the books of accounts and under which head. Please Suggest.
Menu
Whether 269ss applicable for payments made by directors?
Replies (4)
Dear Krunal,
if u will treat this as UNSECURED LOAN then u can not make payment of more than Rs. 20,000/- to one Unsecured Loan Lender in one year.
coz, during assessment proceedings, Assessing Officer will add to your client's income.
I am not treating these payments as unsecured loans but as expenses payable to directors. Then what will be the position? Also note that client has already taken this amount back from company in cheque.
Amount in cheque was taken by the directors after spending the same for the company.
anyone can make payment of less than or Rs. 20,000/- to creditors for expenses or for goods or for fixed assets in a one day.
Recent Topics :
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
- Gst on Guest house 5% without ITC
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
- AGM Defective Notice
- IMS Rejection of Sales and Sales return
- Taxation of Gift - Father to Daughter
Related Topics :
CAclubindia
