Cash transaction

This query is : Resolved

Rakesh D Chauhan (Querist)
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08 December 2012 DEAR READER,
I WANT TO KNOW THAT CAN A COMPANY MAKE A CASH TRANSACTION WITH DIRECTORS AS LOAN.
I WANT TO KNOW THAT ; IS THAT SIMILAR TREATMENT AS A CASH PAYMENT ?

PLEASE NEED GOOD ANSWER.

REGARDS:
RAKESH

CA Manish

CA Manish (Expert)
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08 December 2012 Sec 269SS and 269T will be applicable in case of loan or deposit taken or repaid thru otherwise then by A/c payees cheq above rs 20000/-.

Rakesh D Chauhan

Rakesh D Chauhan (Querist)
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08 December 2012 THEN IT MUST BE DISALLOWED......

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CA Manish

CA Manish (Expert)
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08 December 2012 For more Details follow link:-

https://www.caclubindia.com/forum/analysis-of-section-269ss-and-269t-230448.asp#.UMMUIlJK31U

Rakesh D Chauhan

Rakesh D Chauhan (Querist)
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08 December 2012 DAT I KNW BT I JUS WANT TO KNW DAT CAN DIRECTOR & COMPANY MAKE TRANSACTION IN CASH MODE ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 December 2012 They can enter into cash transactions with each other. However, borrowing and repayment of loan BY the company in cash will attract penalty equal to the amount of loan borrowed or repaid, as the case may be.