Acceptance of loan from a firm

We need to contemplate if section 58A is attracted or not. I am not sure if the partners of a Firm , in this case, will be deemed to be individuals.

Wait for other members to share their thoughts.

Regards

Section 58A (Deposits) will be attracted as acceptance of loan / amount is not covered under exempted deposites.

In case of public company amount accepted from directors is exempted deposit. Partnership Firm is not deemed to be directors. Hence you have to comply with section 58 A and acceptance of deposit rules and will have to file Statement in lieu of advertisement.

Looking forward for more healthy discussion on this query.

Regards!

section 58A is attracted,  this not exempted under deposit rules.

section 58A is attracted,  this not exempted under deposit rules.

Loan taken from partnership firm amounts to loan from its partners who are ultimately  directors of the company however after amendment of 2002 loan from directors is not exempted hence PLA is required.

Hi Rajveer,

Definition of deposit given under Rule 2 wherein it is provided that deposit means any deposit of money with and includes any amount borrowed by a company, but does not include follwoing:

Under Rule 2(ix): deposit shall not include following

"Any amount received from a person who, at the time of receipt of the amount, was a director of the company or a relative of a director, or member of a private company."