Bank transaction
This query is : Resolved
13 March 2015
Respected sir,
we have one propritorship firm and also pvt ltd co. the propritor of propritorship is also director of pvt ltd company.
so we have done no of transaction through banks between both. so i want asked ,
can we take the loan or advance from propritorship firm to pvt ltd co, or from pvt ltd co to propritorship firm through bank
we have one propritorship firm and also pvt ltd co. the propritor of propritorship is also director of pvt ltd company.
so we have done no of transaction through banks between both. so i want asked ,
can we take the loan or advance from propritorship firm to pvt ltd co, or from pvt ltd co to propritorship firm through bank
13 March 2015
yes you can do so wat problem u facing/
13 March 2015
Please refer Section 185 of the Companies Act, 2013 which provides that no company shall, directly or indirectly, advance any loan to any director or any other person in whom the director is interested, or give any guarantee or provide any security in connection with a loan taken by any other person in whom the director is interested. The restriction is also applicable to private companies. So loan can not be given to proprietorship firm as proprietor is also a director in the Pvt Ltd company.
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
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- Import of Software Service.
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- GST on Renting godown to KFCSC for Storage of Raagi
- GST Audit whether Govt Companies are exempt?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- 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
