Cash receipt from branch of pvt ltd co.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 can one branch of any pvt. ltd. co can pay cash to head office again their sale( stock transfer.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 if yes then is their any cash limit.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 July 2012 No restriction on transfer of cash from one branch to another branch as the cash remains in the hand of the hand of the company after all.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 thank you very much Sanjay sir

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 and director can give cash loan to pvt ltd comapny

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 July 2012 A private limited company can take unsecured loan from directors and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975.

While taking loan keep an eye on section 269SS.

Company can not accept such loan in cash if the amount is Rs 20000 or more, otherwise than by way of an account payee cheque or an account payee draft.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 thank you sir

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