26 December 2012
372A of Companies Act, no loan to any body corporate shall be made at a rate of interest lower than the prevailing bank rate, being the standard rate made public under section 49 of the Reserve Bank of India Act, 1934.
26 December 2012
Mr. S Sivasalapathy Sec 372A will not applicable to Private Limited Company. So question for Interest at prevailing rate will not arise.
26 December 2012
1) Section 2(22)(e) of the Income tax Act applies only if the lending company is a 'domestic company' and it possesses 'accumulated profit'.
2) Section 372A of the Companies Act,1956 doesn't apply to a private limited company unless it is a subsidiary of a public company.
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