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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 i have started my firm as reseller/works contract/others
and also registered in VAT and give deposit of Rs. 25000/- as voluntary registration & VAT & CST Deposit Rs. 20000/- and also do expense of Rs.5000/- around. all the expense bear by my father.

Does the amount of Rs. 50,000/- treat as my capital or treat as unsecured loan ?

thanks

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 December 2011 If the business is the Proprietorship, you only the owner then the amount need to be considered as loan and need to pay back

If the business is partnership, your father also one of the partner in the business it can be considered as Capital part

so it based on the setup of your business