Unsecured loan by a private limited company
This query is : Resolved
01 October 2013
Dear Members,
Please give your views on my following query;
Can ABC (a partnership Firm) give unsecured loan to ABC Private Limited.?
Where, the Directors of ABC Pvt. Ltd. are also the partners of ABC.
What provisions of Companies Act or Income Tax Act are required to be seen in this condition.
Please share your views.
Please give your views on my following query;
Can ABC (a partnership Firm) give unsecured loan to ABC Private Limited.?
Where, the Directors of ABC Pvt. Ltd. are also the partners of ABC.
What provisions of Companies Act or Income Tax Act are required to be seen in this condition.
Please share your views.
01 October 2013
Hi
Deposits from Partnership firm:
Acceptance of deposit by a private company from a partnership firm:—
(a) If all partners of the firm are also the directors of a private company, such private company can accept unsecured loans/deposits from the firm. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all partners of a firm are not the directors of a private company i.e. some of them are the directors and remaining are the shareholders, still private company can accept deposit from the firm.
(c) If all partners of a firm are not the directors of a private company i.e. some of them are the directors, some of them are shareholders and remaining are relatives of a partners who is a shareholder. This case is not covered under rule 2(b)(ix).
(d) Where some partners are directors in a private company and remaining partners are not their relatives, private company cannot accept deposits from such firm.
Deposits from Partnership firm:
Acceptance of deposit by a private company from a partnership firm:—
(a) If all partners of the firm are also the directors of a private company, such private company can accept unsecured loans/deposits from the firm. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all partners of a firm are not the directors of a private company i.e. some of them are the directors and remaining are the shareholders, still private company can accept deposit from the firm.
(c) If all partners of a firm are not the directors of a private company i.e. some of them are the directors, some of them are shareholders and remaining are relatives of a partners who is a shareholder. This case is not covered under rule 2(b)(ix).
(d) Where some partners are directors in a private company and remaining partners are not their relatives, private company cannot accept deposits from such firm.
01 October 2013
Dear Sir,
As per my understanding this is the interpretation of Rule 2(b)(ix) of Acceptance of Deposit Rule, 1975.
I just put my exact situation;
ABC having 5 partners out of these 5 partners 3 are directors in ABC Pvt. Ltd. and remaining 2 partners of ABC are relatives.
Now, in this case, whether ABC Pvt. Ltd. can accept unsecured loans from ABC.
It'll a great help from you if you can refer me any case law in this regard or any section/ provision/ rules in this regard.
Many Thanks.
As per my understanding this is the interpretation of Rule 2(b)(ix) of Acceptance of Deposit Rule, 1975.
I just put my exact situation;
ABC having 5 partners out of these 5 partners 3 are directors in ABC Pvt. Ltd. and remaining 2 partners of ABC are relatives.
Now, in this case, whether ABC Pvt. Ltd. can accept unsecured loans from ABC.
It'll a great help from you if you can refer me any case law in this regard or any section/ provision/ rules in this regard.
Many Thanks.
02 October 2013
Hi
If you read Rule 2(b)(ix) of the Acceptance of deposit Rules, 1975, then it will says that if private company are taking unseured loan from patner ship fir, as per stipulated condition will not be treated as deposit and they are eligible to take such loan.
In your case your company is eligible to take loan from such partnership firm.
If you read Rule 2(b)(ix) of the Acceptance of deposit Rules, 1975, then it will says that if private company are taking unseured loan from patner ship fir, as per stipulated condition will not be treated as deposit and they are eligible to take such loan.
In your case your company is eligible to take loan from such partnership firm.
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
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Subscription paid to foreign customer
- 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
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
