16 October 2010
WHETHER INTEREST PAYMENT OR CREDITED IS CONSIDERED AS LOAN FOR REPORTING PURPOSE? WHETHER LOANS RECEIVED FROM BANKS, FINANCIAL INSTITUTION IS TO BE CONSIDERED FOR THIS PURPOSE I.E.REPORTING IN CASE OF LOANS TAKEN AND LOAN REPAID DURING THE YEAR
16 October 2010
My understanding is as follows:- 1.Normally interest element does not fall with in the scope of section 269SS. However, if interest is converted into loan or deposit and if the aggregate of the loans and the interest so converted as loan exceeds the limit of section 269SS, the auditor has to report on the same.
2. Banks are excluded. But if the Financial institution is not governed by central / state act, sections 269SS /T applies.
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