Section 185 & 186 disclosure requirements
This query is : Open
10 June 2014
Proplem:
ABC Ltd wants to transact with XYZ Ltd for a sum of Rs.15,00,000 and XYZ Ltd wants to transact with PQR Ltd. for a sum of Rs.15,00,000. Where as one Director of XYZ Ltd. is aslo a director in PQR Ltd. (i.e., Cover u/s 185 and 186).
Now question is that : there is any voilation of law or panelty attraction and is there any disclosure requirement for ABC Ltd and PQR Ltd.
10 June 2014
186 apply on company which give loan so will not attract on pqr limited.
for ABC if its exceed limit given in 186 require BR or SR as per condition.
For XYZ also check Limit of 186 if attract then BR or SR as per condition.
185 is regarding loan to director.
so there is no relation (which mention in 185) between ABC & XYZ so no penalty and violation of law.
But B/W XYZ & PQR there are u said relation which mention under 185. so if 185 attract u cant give loan to director or person interested in director. so if company entered in transaction so penalty will levy on company as per section 185.
I write articles on 185 & 186 give me ur email id i will mail you
for ABC if its exceed limit given in 186 require BR or SR as per condition.
For XYZ also check Limit of 186 if attract then BR or SR as per condition.
185 is regarding loan to director.
so there is no relation (which mention in 185) between ABC & XYZ so no penalty and violation of law.
But B/W XYZ & PQR there are u said relation which mention under 185. so if 185 attract u cant give loan to director or person interested in director. so if company entered in transaction so penalty will levy on company as per section 185.
I write articles on 185 & 186 give me ur email id i will mail you
Message likes :
1 times
16 June 2014
@ ACS Divesh Goyal : my mail id: gulshan@outlook.in
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- 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
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
