What rate should be taken for charging interest under section 186 for loans and advances? The act says like the one closest to goverment security yield. What rate can be taken as the base for ascertaining government security yield?
Menu
Interest under section 186 of companies act 2013
Replies (1)
As per Section 186(7) "No loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan". At present, Return on Govt Security for period of more than one year ranges from 6% to 7%. For ascertaining more precise rate, you can visit www.rbi.org
Recent Threads
- Income tax act 40 A (3)
- Transmission of deceased's shares in physical form
- Shall I pay GST payment for unkonwnly cancelled in
- Error in GSTR1 filing for October 25
- Inverted Rate structure .
- Exemption to be climed
- GST TDS u/s 51 Applicability on RBI and it's subs
- Time allowed to buy another asset
- ITR not processed for the FY 2024-25
- Gift of money to my wife.
Related Threads
CAclubindia
