girija.parcha (Parctice) (35 Points)
17 June 2010a director taken loan from bank and company has given guarentee for tha loan,director has tranfered that loan funds to the company, company repayinh the loan directly to the bank through ECS Clearence. my doubt is can we treat it as loan from financial institution ? or we should treat it as loan from director?
if it is loan from director than on interest TDS will attract or not?
if we have taken any loan from director, interest need to pay compulsory?
Ashish Sharma
(Service)
(1028 Points)
Replied 17 June 2010
In this case of TDS as the Financial institution are out of preview of TDS on interest of loan. in my view company should deposit TDS and recover it from director. director can give loan without interest. but here company is paying interest of director and amount given by the director is only principal amount interest amount given by the company will be considered given to director
wait for experts views
CA VINAY BANSAL
(In job with KPMG)
(289 Points)
Replied 17 June 2010
check compliance with section 295 too.
CAclubindia
