can a director of a private limited company, withdraw amount from company as advance against salary for the year?
Any compliance for this in ROC and income tax?
2 Replies
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36355 Points)
Replied 22 May 2020
I think it is not allowed under section 185. Please see the below
shadab shaikh
(133 Points)
Replied 24 May 2020
A Director Cannot take advance salary since it's a form of loan under section 185
however you can show it as excess remuneration to director that shall be refundable to company within 2 years
however you can show it as excess remuneration to director that shall be refundable to company within 2 years
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