CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
07 May 2009H Pvt. Ltd is the Holding of S Ltd, can S ltd convert the loan from H Pvt. Ltd into equity.
In other words can the repayment of loan be made by way of issuing equity shares??
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 07 May 2009
not permissible u/s 269T of the income tax act
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 07 May 2009
But Sir, section 269T is related to the repayment of Deposit only.
K.S.V.N.S.KAMESWARA RAO
(Company Secretary in Practice)
(34 Points)
Replied 08 May 2009
| Originally posted by :Ankur Srivastava | ||
| " | H Pvt. Ltd is the Holding of S Ltd, can S ltd convert the loan from H Pvt. Ltd into equity. In other words can the repayment of loan be made by way of issuing equity shares?? |
" |
yes u can.
CA SUDIPTA SINHA
(Commerce Coaching- Accounts Cost FM)
(735 Points)
Replied 10 May 2009
further shares can be offered to any persons in any manner whatsoever if a special resolution is passedto that effect is passed by the company in GM(refer to Sec. 81(1A) of Companies Act). if the loan carries an option to be converted into the equity sahres then Sec. 81 shall not apply.
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