Can a Pvt Ltd Company give Machinery on rent to its directors?
Machine is in the name of Company and On that machine there is 1 Loan also.
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Renting of Machinery
Replies (5)
yes co. can give it , but have to charge gst on the rent amount if co. is registered under gst
according to companies act :
this becomes a related party transaction u/s 188(1). hence a board resolution must be passed in a board meeting to carry out this transaction.
also,
if the amount of lease exceeds: 10% or turnover/networth or rs.100 crores (whichever is lower), a resolution in the general meeting is also required to carry out the transaction.
according to companies act:
this becomes a related party transaction u/s 188(1) hence a board resolution must be passed in a board meeting to carry out this transaction. and that director should be present while passing the board resolution.
also ,
if the amount of lease exceeds : 10% of networth / turnover of the company or rs.100 cr (whichever is lower) a resolution in general meeting is also required to carry out this transaction.
according to companies act:
this becomes a related party transaction u/s 188(1) hence a board resolution must be passed in a board meeting to carry out this transaction. and that director should be present while passing the board resolution.
also ,
if the amount of lease exceeds : 10% of networth / turnover of the company or rs.100 cr (whichever is lower) a resolution in general meeting is also required to carry out this transaction.
according to companies act:
this becomes a related party transaction u/s 188(1) hence a board resolution must be passed in a board meeting to carry out this transaction. and that director should be present while passing the board resolution.
also ,
if the amount of lease exceeds : 10% of networth / turnover of the company or rs.100 cr (whichever is lower) a resolution in general meeting is also required to carry out this transaction.
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