ANY PAYMENT DONE BY COMPANY ON BEHALF OF MD..HOW TO SHOW THIS TRANSCTION IN ACCOUNT OF THE COMPANY ? I think it is to be shown under loans and advances to director..is there any requirement to take a letter signed by MD to authorise such transction?
soniya Patil (Accounts Manager) (54 Points)
01 March 2014ANY PAYMENT DONE BY COMPANY ON BEHALF OF MD..HOW TO SHOW THIS TRANSCTION IN ACCOUNT OF THE COMPANY ? I think it is to be shown under loans and advances to director..is there any requirement to take a letter signed by MD to authorise such transction?
SHASHANK AGARWAL
(self employed)
(114 Points)
Replied 01 March 2014
Loans cannot be shown since same will be classified as deemed dividend u/s 2(22)(e) .
therefore show it as perquisite given to MD and will be taxable as salary in the hands of MD.
for more details visit and post : https://knowyourtaxation.blogspot.in/
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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