Section 372A
This query is : Resolved
C.A. LINESH PATIL
(Querist)
13 November 2010
whether section 372A apply to following-
1.any loan/guarantee given by subsidiary to holding.
2.if S made to loan any body corporate and H gives guarantee to S.
1.any loan/guarantee given by subsidiary to holding.
2.if S made to loan any body corporate and H gives guarantee to S.
udit sharma
(Expert)
15 November 2010
Hi......
1. Section 372A will not apply in case of loan made by, guarantee given or security provided by a Holding Company to its Wholly Owned Subsidiary. The Section will apply in case of a loan made, guarantee given or security provided by a Holding Company to its subsidiary(will not be applicable only in case of Wholly Owned Subsidiary) and will also be applicable in case of loan made, gaurantee given or security provided by a subsidiary to its Holding Company.
2.Section 372A(1)(ii) covers guarantee given or security provided in connection with a loan made by a Body Corporate to a Third Party or vice versa. Hence, section 372A will be applicable in your case.
Views of eminent experts are welcome...
Best Regards
Udit S. Sharma
1. Section 372A will not apply in case of loan made by, guarantee given or security provided by a Holding Company to its Wholly Owned Subsidiary. The Section will apply in case of a loan made, guarantee given or security provided by a Holding Company to its subsidiary(will not be applicable only in case of Wholly Owned Subsidiary) and will also be applicable in case of loan made, gaurantee given or security provided by a subsidiary to its Holding Company.
2.Section 372A(1)(ii) covers guarantee given or security provided in connection with a loan made by a Body Corporate to a Third Party or vice versa. Hence, section 372A will be applicable in your case.
Views of eminent experts are welcome...
Best Regards
Udit S. Sharma
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