01 April 2015
Hi, I have a company who engages in trading with turnover of about 5 crore. Now the company wants to give loan of around 2crore to another company from revenue on sales. This would mean that the company would not be able to pay to creditors for goods for about 1-2 years. So I want to ask if these creditor for goods would be considered as deposit under companies act 2013 which are not allowed. Also I want to ask that can the company pay interest to these creditors?
Are there any restrictions regarding these in companies act or Income tax act excepting the special resolution from shareholders?
01 April 2015
If the dues to the 'creditors for goods' are outstanding for more than 365 days,then that balance will not be considered as 'deposit' as per Companies Act,2013 read along with Companies)Acceptance of Deposit) Rules,2014.
CAclubindia
