28 July 2016
The XYZ company accepts deposit and pays interest on its deposits. Out of total deposits, a deposit of Rs. 50 Lakhs @ 10% which was received from a person who is a relative of a Key Managerial Person of a company. During the F.Y 2015-16, the gross interest accrued/credited on his deposit was Rs. 5,00,000 (TDS -50,000) but interest actual paid was Rs. 1,80,000/-. As per AS 18, this is a related party transaction but I require clarification on what amount will beshown in Financial statement i.e., interest - Gross or actual paid?
CAclubindia
