14 August 2013
sir .... i want to the treatment of advance given to directors on account of exps by pvt co in cash (exceeds Rs.20000 ) ... what will the treatment of that as per it act & and co act ..... ????
14 August 2013
then it is not loan it is advance for business purpose and not personal loan, even for reimbursement of exp for business purpose it will not be personal loan.
14 August 2013
1)it can be accounted as imprest advance
2)it will be okay if you have given amount as advance..but while booking expenditure if you pass expenditure in a single day more than 20000 it will be disallowed 40A(3)
01 September 2014
There will be violation of section 2(22)(e) of the Income tax act and it will be deemed dividend and taxable in the hand of directors
CAclubindia
