Can a private Ltd company give unsecured loan/unsecured investment to another Private Ltd company. If can what can be the interest rate at which the company can give loan.
Menu
Can a private ltd co give unsecured loan to another private
Replies (1)
Yes, a private company can give unsecured loan to another private company after passing Board resolution u/s 292(1). Inter-corporate deposits are not covered in the definition of 'deposit' u/s 58A. Provisions of Sec.373A(3) relating to rate of interest are not applicable to private companies and hence the company can charge any rate which is reasonable.
Recent Topic
- What's the ONE thing about GSTR-2B / IMS reconcili
- Is GST Registration Mandatory for Freelancers in I
- ITR TO FILE
- Shift of Place of Business from one state to anoth
- Form 10E u/s. 89(1). Need clarification because Ex
- Long Term Capital Loss - Tata Capital unlisted sha
- Section 54F deduction - GST and Stamp Duty cost wh
- Professional Crossed 20 Laks in Dec 26 Failed to T
- F&O in ITR
- CA Final Self pace Module
Related Topics
CAclubindia
