Loan transaction

This query is : Resolved

TARIQUE RIZVI (Querist)
Follow

19 October 2016 Can a private limited company take short term loan [ Unsecured Loan ] from a partnership firm ? Whether there is certain restriction on loan transaction under companies act 2013. The paid up capital of the company is just Rs 1,00,000/= Whether paid capital of the company is related with the said loan transaction ?

Pratik Shah

Pratik Shah (Expert)
Follow

20 October 2016 No, taking loan from Partnership will be considered as Deposit.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

21 October 2016 Thanks for your response. But Mr Pratik Shah. As per companies act what is the difference between loan and deposit. The concept is not clear to me. Will you please give me yr precious moments to make me understand the definition of loan and deposit as per company act. Actually I am handling the very first time finalization of some private limited company. Hope u will guide me.

Pratik Shah

Pratik Shah (Expert)
Follow

21 October 2016 As far as I know, Companies Act does not have definition of "Loan". However, it has definition of "Deposit" in Deposit Rules. Please refer the same.
Basically, as per Companies Act, any amount received by a Company shall be treated as Deposit except otherwise mentioned in its definition specifically.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now