Frequent payment to the directors

This query is : Resolved

SOWMYA (Querist)
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08 May 2013 IN OUR PRIVATE LTD. COMPANY FREQUENTLY PAYMENTS ARE BEING MADE TO THE DIRECTORS.
HOW TO ACCOUNT THE ABOVE

1.SHALL IT BE SHOWN AS LOANS MADE TO DIRECTORS(OR)
2.SHALL IT BE ACCOUNTED AS DRAWINGS(IT SHOULDNT BE ACCOUNTED AS DRAWINGS SINCE ITS NOT A PROPRIETORSHIP BUSINESS.

PLEASE ANSWER THE QUESTION

ITS URGENT
PLEASE

Guest

Guest (Expert)

08 May 2013 If given as remuneration then debit as a remuneration
can not be shown as loan otherwise it will be treated as deemed dividend u/s 2(22)(e) of income tax Act