Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Inter company loans

Pvt ltd 642 views 1 replies

s.sainarayanan

COMPANY SECRETARY

38 Points Joined June 2009

---

Dear Collegues,

INTERCOMPANY LOANS BETWEEN PVT COMPANIES WHICH ARE HAVING HOLDING AND SUBSIDIARY RELATION

Please confirm that above loans are exempt and that it will not become DEEMED DIVIDEND as there are common directors and that no DDT (divident distrubiton tax is payable in this regards..

thanks and regards,

CS S.S.NARAYANA

Replies (1)

AMIT MISHRA

Legal Professional

393 Points Joined July 2011

Dear Sainarayanan,

In your case section 372A of the Companies Act 1956 does not apply. Although the transaction falls under related party transactions. See the status of interested directors get it recorded in the books and get a resolution passed in the general meeting.

Thanks & Regards

Amit Mishra

BSamrish & Co.