Companies act 2013 deposit
This query is : Resolved
01 April 2015
Hi,
I have a company who engages in trading with turnover of about 5 crore. Now the company wants to give loan of around 2crore to another company from revenue on sales. This would mean that the company would not be able to pay to creditors for goods for about 1-2 years.
So I want to ask if these creditor for goods would be considered as deposit under companies act 2013 which are not allowed.
Also I want to ask that can the company pay interest to these creditors?
Are there any restrictions regarding these in companies act or Income tax act excepting the special resolution from shareholders?
I have a company who engages in trading with turnover of about 5 crore. Now the company wants to give loan of around 2crore to another company from revenue on sales. This would mean that the company would not be able to pay to creditors for goods for about 1-2 years.
So I want to ask if these creditor for goods would be considered as deposit under companies act 2013 which are not allowed.
Also I want to ask that can the company pay interest to these creditors?
Are there any restrictions regarding these in companies act or Income tax act excepting the special resolution from shareholders?
01 April 2015
If the dues to the 'creditors for goods' are outstanding for more than 365 days,then that balance will not be considered as 'deposit' as per Companies Act,2013 read along with Companies)Acceptance of Deposit) Rules,2014.
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
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- LC charges in relation to Asset purchased should be Capitalised ?
- Copyright software
- Value of property in capital gain
- Transporter Declaration form
- Multiple trade mark
- Regarding TDS Applicability For Director Remuneration
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
