What is a maximum rate of interest at which one public company can give loan to other public company ? Is it 12.50% ( These two companies are not related to each other )
What is a maximum rate of interest at which one public company can give loan to other public company ? Is it 12.50% ( These two companies are not related to each other )
As per Section 372A(3) of Companies Act minimum interest at bank rate has been prescribed. There is no maximum ceiling.
ACCEPTANCE OF DEPOSIT RULES APPLIES TO THIS CASE ?
It is not a 'deposit' as per Rule 2(b)(iv) of Companies (Acceptance of Deposits) Rules 1975.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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