applicability of section 297 & 299

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CS Vandana Kacholia (Querist)

14 May 2009 My company is a private company and one of director of my company is having partnership in its sister concern so in that case whether section 297 & 299 will be applicable and why?

CS Vivek Hegde

CS Vivek Hegde (Expert)

14 May 2009 Dear Vandana

Section 297 is applicable if ur company has entered into any contracts with that sister concern. Per se it is not applicable.

Section 299 is applicable to the extent of Disclosure required in Form 24AA.

If u can elaborate the situation i can clarify more.

rgds

Vivek

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CS Vandana Kacholia

CS Vandana Kacholia (Querist)

14 May 2009 thanks vivek

I am having one more query!!!

Can a private company accept unsecured loan from their director , if yes then any resolution will be passed for this and will it be termed as a deposit

Regards
CS vandana

CS Vivek Hegde

CS Vivek Hegde (Expert)

15 May 2009 Dear Vandana

Yes. A private company can accept unsecured loan from Directors.

U can see the following extract from the definition of DEPOSIT:
(b)"deposit" means any deposit of money with, and includes any amount borrowed by, a company, but does not include-

(ix)any amount received by a private company from a person who, at the time of the receipt of the amount, was a director, relative of director or member: Provided that the director or member, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others;

rgds

Vivek Hegde

Message likes : 1 times

CS Vandana Kacholia

CS Vandana Kacholia (Querist)

15 May 2009 again Thanks vivek

CS Vandana Kacholia

CS Vandana Kacholia (Querist)

15 May 2009 Hi vivek

Again one more query, hope u wont mind to answer that one also, well FEMA Act is applicable to my co. so will there be any compliance from ROC side?

Thanks & Regards
CS Vandana

CS Vivek Hegde

CS Vivek Hegde (Expert)

20 May 2009 Hi Vandana

One suggestion. pls put the query in the domain so that everybody can see and answer.

FEMA is applicable to everybody if u r dealing with FOREX.

Applicablility of FEMA requires no ROC filing.

Cheers

Vivek

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