11 March 2010
Firm Started on 01.04.07 with capital of Rs.1,00,000/- due to huge operational expenses firm has taken cash loan from managing partner up to Rs.5,50,000/- Dated on 05.07.2007 (accounted under current account Cr.5,50,000/-)
Please suggest Whether 269SS penalty will applicable or not.
11 March 2010
Dont show it as a loan. Show the same as additional capital introduced by the managing partner. Then 269SS is not attracted. Only thing interest will be restricted to 12%. If you show as loan then 269SS will be applicable.
CAclubindia
