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?
1 Replies
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/
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