Scetion 295
This query is : Resolved
24 February 2010
Loan given as per Section 295 to subsidiary. In this case, should the subsidiary be 100 % or partly subsidiary ?
24 February 2010
any subsidiary company
24 February 2010
Section 295 exempts loan given to subsidiary.
Thus it can be subsidiary which may not be 100%
Thus it can be subsidiary which may not be 100%
24 February 2010
If one company gives loan to its subsidiary then section 295 is not applicable. Section 295 deals with loan to director.
In your case section 372A is applicable as it is inter-corporate loan.
If the borrower subsidiary company is a wholly owned company then the above transaction is exempt from section 372A u/s 372A(8).
If this is not a wholly owned company then you have to comply with section 372A.
Regards
In your case section 372A is applicable as it is inter-corporate loan.
If the borrower subsidiary company is a wholly owned company then the above transaction is exempt from section 372A u/s 372A(8).
If this is not a wholly owned company then you have to comply with section 372A.
Regards
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