21 December 2013
whether salary payable to director converted into unsecured loan attracts any penalty by passing journal entry in the books of accounts.
21 December 2013
Salary is a trading liability not loan obtained. Conversion of salary in to loan is not discharge of loan. Further it is loan obtained otherwise then in money. By mere book entries loan is created. in this case 269ss is not attracted. no penalty is attracted.
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