Acceptance of deposit from a non-director
This query is : Resolved
Amit Agarwal
(Querist)
14 March 2013
Dear Experts,
The Directors of ABC Pvt Ltd has borrowed funds from another Pvt Ltd Company and purchased Equity Shares of ABC Pvt Ltd. Can they do so, is there any consequences?
The Directors of ABC Pvt Ltd has borrowed funds from another Pvt Ltd Company and purchased Equity Shares of ABC Pvt Ltd. Can they do so, is there any consequences?
Ajay Mishra
(Expert)
14 March 2013
Hi
Rule 2(b)(ix) exempts any amount received by a company from its shareholder from the definition of deposits. The shareholder shall furnish a statement to the company at the time of bringing in the money that the money has not been borrowed or accepted by him from other sources, to make deposit with the company.
In your case, your director arrange funds for purchasing of shares will cover under the deposit and can not get benefit of Rule 2(b)(ix).
Rule 2(b)(ix) exempts any amount received by a company from its shareholder from the definition of deposits. The shareholder shall furnish a statement to the company at the time of bringing in the money that the money has not been borrowed or accepted by him from other sources, to make deposit with the company.
In your case, your director arrange funds for purchasing of shares will cover under the deposit and can not get benefit of Rule 2(b)(ix).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Import Order Cancelled.
- GSTR-9C filing
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- Intimation under section 245
- Section 269ST applicability for capital introduced by partner to his partnership firm
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
