Company act 2013
Raghav Verma (proprietor) (25 Points)
30 June 2016
Clarification about section 208 of companies act 2013
Raghav Verma (proprietor) (25 Points)
30 June 2016
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 30 June 2016
Hi raghav,
There is a prohbition to pay interest out of capital, however there is an exception to this rulle which is specified in sec 208 whic state that
Where any shares in a company are issued for the purpose of raising money to defray the expenses of the construction of any work or building, or the provision of any plant, which cannot be made profitable for a lengthy period, the company may pay interest out of capital and other conditions as specified in this section to be followed
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
