22 August 2011
I do not agree that advance salary can be deemed dividend. At the time of salary provision, director's account may be credited and advance salary might be debited. At the time of payment, Director's account might have been debited so that there is no outstanding balance in the account. Also advance salary attracts TDS. Once a sum paid is salary, it cannot be treated as dividend.
22 August 2011
section 2(22)e is not applicable for your case. As this section applicable to loans and advances given to director by company. In your case advance salry given to a director does not come within the perview of this secction. sec 192 will be applicable for advance salary.
CAclubindia
