Pls help with this query:
Abc ltd wants to giv loan to xyz llp. However abc ltd is partner in xyz llp .. Whether the transaction falls under 185 (1) (a) or 185 (1) b?
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Loans to Firm, Body Corporate, Aop's
Replies (4)
Quick Summary
185- 1 deals with internal loans from the section summary. Is abc called as the holding company? If so, 185(2)C&D is appropriate and if abc is treated as a Holding company then section 185(3) d is more appropriate. Can you please tell me the abc’c nature of business, how much stake does it hold in xyz lip?
It comes under 185(1)(a) provided that the loan should be given by the holding company to it's subsidiary company for business purposes exclusively
185-1a is loan from other company to a director of company. 185(3)D is holding to subsidiary. Source: tax gur
I think caclub is not an associate to the above source and it doesn’t allow me to post any links and write their name as well while submitting.
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