Applicability of sec 185

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Nitesh (Querist)

16 January 2014 Provided that Sec 185 shall not apply to—
(a) the giving of any loan to a managing or whole-time director—
(i) as a part of the conditions of service extended by the company to all its employees;

Let me know what it say exactly...if a company sometimes giving loan to employees @ prescribed interest rate....then can a company give loan to its whole time director...?

can a company do this, if yes then with interest or without interest?

please help

AVTAR SINGH

AVTAR SINGH (Expert)

16 January 2014 To keep at par with the other employees of the company, the loans given to MD or WTD are out of preview of sec. 185 if the loan is given as a part of the conditions of services. And such conditions of services are extended to all employees (not merely to MD or WTD)

Nitesh

Nitesh (Querist)

20 January 2014 Thanks Avtar..

Let me know one more thing that Whether it will be Interest free or not...and it will be part of perquisite or not (Interest).....

Please help..........

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