INTEREST RECOVERABLE EXCEEDING THE LOAN AMOUNT
A Pvt Ltd. gave loan to another Company around eight years back.
The rate of interest claimed is around 13%
Such another company deducted TDS every year on interest payable
In books of Pvt. Ltd. Company, the amount of interest recoverable
has exceeded the amount of original loan as the another company has not made
any payment since the date of receiving loan neither towards principal
nor towards interest.
Please advise whether it would cause any problem for Pvt. Ltd. Company giving the loan