Hi
I wanted clarification on Whether an Indian Pvt Ltd Company can take Interest free loan from NRE account of Director of the Company which is client of the said Indian Company. If yes then what are the formalities to be taken care of. Also whether transfer pricing will become applicable . Please if you can specify the section which will be applicable.
Dear Jatin,
I have very limited knowlege on this but hope this link helps u
https://www.moneycontrol.com/news/nri-experts/repatriable-loans-to-be-freeinterest_231641.html
As far as TP is concerned it can be attracted in terms of sec 92A(2)
(d) one enterprise guarantees not less than ten per cent of the total borrowings of the other enterprise;
But there can be other cases as well plz go through that sec 92A(2) & check up with the facts of ur case.
CAclubindia
