Whether the out of pocket expenses incurred by directors on behalf of Company and then adjusted through journal entry attreact Sec 269 SS
thanks & Regards,
Ramesh Kr Verma
4 Replies
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 25 August 2009
Dear Mr. Ramesh,
Section 269 of the Companies Act, 1956 deal with appointment of managing or whole time direcor or manager and not dealing with such matter as you mentioned.
Regards
CA. Prabudh Sharma
(CA)
(83 Points)
Replied 03 November 2009
Dear Sir,
He talks about Sec. 269SS of the Income Tax Act, 1961 and not about Sec. 269 of Companies Act, 1956.
CA. Prabudh Sharma
(CA)
(83 Points)
Replied 03 November 2009
Probably not - Reason:
269SS talks of loan or deposit.
out of pocket expenses incurred by directors on behalf of Company are in the nature of Current Liability of the Company and do not represent a loan/deposit. But pl. be careful to group the liability in C/L & Provisions.
Views welcome
Gundurao
(CA)
(33 Points)
Replied 15 November 2009
Sir
the amounts paid by the director of the company towards expenditure is not covered under sec 269 SS, there is a case which we have, if you want we can give the reference/
regards
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