Are Inter Corporate Deposits covered in Section 372A if the same are made to Group Companies
Mohammed
(CS, Mcom, LLB)
(852 Points)
Replied 30 June 2011
Please read Sec 372A (8)(c)
It says any loan made by a holding company to its wholly owned subsidiary doesnot get covered into sec 372A
Pavan Bharadwaj
(Practicing Chartered Accountant)
(353 Points)
Replied 01 July 2011
Only id there is haling and subsidiary relationship, Sec 372a will not apply. In all other cases 372A will apply. So, even in case of group companies, if ther is no holding and subsidiary relationship, 372A will apply.
CAclubindia
