Loan by Pvt ltd co. to partnership firm

Tax queries 2942 views 6 replies

Dear Friends,

Can a Pvt. Ltd.Company give loan to partnership firm and charge interest for the same.

Any restriction under the IT act or Co. law ?

Please Reply

Rajesh Poddar

 

Replies (6)

I DONT AGREE WITH SUNIL THERE IS NO SUCH CONDITION ONLY THING TO BE KEPT IN MIND IS SEC 2(22)(e) DOES NOT GETS ATTRACTED...

I agree with Amir sir, but apart from income tax act there are many other restrictions in companies act 1956, like these type of transactions are to be reported in sec 301 of companies act and also conditions laid down in sec 372 & 372A should be satisfied.

Dear Shailendra u R RITE REGARDING SEC 301 BUT SEC 372 A IS NOT APPLICABLE ON PRIVATE  COMPANIES...(I GUESS SEC 372 WAS REPLACED BY SEC 372 A)

Dear Amir sir,

 

Sec 372 refers to the purchase of shares of another companies, however sec 372A refers to the intercorporate loan and investment.

 

Here Mr. Rajesh has asked about the loan so i have quoted here section 372A instead of sec 372.

There is no specific restriction for PRIVATE LTD co. in COMPANIES ACT as well as INCOE TAX. Amir is absolutely right


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