58A

This query is : Resolved

student (Querist)
Follow

07 May 2011 CO A (PVT LTD) ACCEPTED DEPOSITES FROM ANOTHER CO [B] WITHOUT ANY ADVTS ETC [NOT AS PER SEC 58A(1) & (2)].....CO B HAD ALSO TAKEN LOAN FROM OTHER BANKS /FIS FROM WHICH IT IS PAYING CO A .........

THEREFORE AS PER ACCEPTANCE OF DEPOSIT RULES DEPOSIT NOT INCLUDE

INTER CORPORATE DEPOSITS [OMMTTED ]

ACCEPTANCE OF DEPOSIT FROM DIRECTOR OR RELATIVES OF DIRECTOR OR MEMBER PROVIDED DELARATION IN WRITING THT AMT GIVEN AS DEPOSIT IS NOT OUT OF THE LOAN BORROWED.

BUT IN MY CASE THIS COND IS VIOLATED ..

HOW CAN I FLOAT CO BY TAKING UNSECURED LOANS FROM DOR OR MEMBRS.

WHETHER THERE WIL BE VIOLATION IF SUCH AMT IS GIVEN O/T OF SECURED LOANS.

WHT 'S THE SOLUTION

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

09 May 2011 You can take unsecured loans from directors or their relatives or members however subject to getting a declaration from them that they have lent the money out of borrowed funds.

So if the amount is lent out of secured loans, there is violation of Companies (Acceptance of Deposits) Rules. The unsecured loan would in that case, amount to Deposit attracting provisions of Section 58A.

Yours being a private company is prohibited from any invitation or acceptance of deposits from persons other than its members, directors or their relatives.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DHANASHRI KARMARKAR

CA Aakarsh Jain

Michael & Co.

divakar podaturu

sachingurav

Subscribe Now

58A

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA