Section 58A Public Deposits
This query is : Resolved
28 December 2010
QUERY 1:
X, Y and Z are the share holders and directors of XYZ Pvt Ltd
XYZ Pvt Ltd is a holding company of A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
If X, Y and Z gives loan to A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd, will it attract the provisions of 58A or not?
Note: X, Y and Z are not the directors and shareholders A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
QUERY 2:
P, Q and R are the share holders and directors of 10 private companies and partners of a LLP.
Can a LLP give loan to the 10 private companies in which P, Q and R are the shareholders and directors?
On both the above cases, i need to know if there is any Sec 58A violation or any violation under the companies act.
X, Y and Z are the share holders and directors of XYZ Pvt Ltd
XYZ Pvt Ltd is a holding company of A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
If X, Y and Z gives loan to A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd, will it attract the provisions of 58A or not?
Note: X, Y and Z are not the directors and shareholders A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
QUERY 2:
P, Q and R are the share holders and directors of 10 private companies and partners of a LLP.
Can a LLP give loan to the 10 private companies in which P, Q and R are the shareholders and directors?
On both the above cases, i need to know if there is any Sec 58A violation or any violation under the companies act.
28 December 2010
Answer to Query 1
Yes it will attract Section 58A. Loans from members or directors alone is not considered a "Deposit" as per Companies Acceptance of Deposit Rules, 1975.
Answer to Query 2
Loan by LLP to 10 private companies will be a "Deposit".
Yes it will attract Section 58A. Loans from members or directors alone is not considered a "Deposit" as per Companies Acceptance of Deposit Rules, 1975.
Answer to Query 2
Loan by LLP to 10 private companies will be a "Deposit".
28 December 2010
Dear Jayashree,
Thanks a lot for the assistance..
But what is the Limit for an LLP and how many Pvt Company it can invest which will not be considered as Deposit??
Thanks a lot for the assistance..
But what is the Limit for an LLP and how many Pvt Company it can invest which will not be considered as Deposit??
28 December 2010
Dear Mohammad,
Loan by LLP to a private company will be considered a deposit.
Loan by LLP to a private company will be considered a deposit.
Message likes :
1 times
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
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Reporting Income under Section 44ADA
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
