Foreign holding company giving loan to indian co.??
This query is : Resolved
28 November 2016
Dear Member,
Can a Foreign Holding Company give loan to Indian Subsidiary Company?? What are the compliance associated with it??
Can a Foreign Holding Company give loan to Indian Subsidiary Company?? What are the compliance associated with it??
29 November 2016
YES, AS PER SECTION 186 OF THE COMPANIES ACT 2013, A FOREIGN HOLDING COMPANY CAN GIVE LOAN TO ITS SUBSIDIARY COMPANY UPTO 60% OF PAID UP SHARE CAPITAL, FREE RESERVES AND SECUTIES PREMIUM OR 100% OF FREE RESERVE AND SECURITIES PREMIUM BY PASSING BOARD RESOLUTION IN BOARD MEETING ( AS PER SECTION 179). BUT IF COMPANY CROSES THIS TRESHOLD LIMIT THEN BY PASSING SPECIAL RESOLUTION AT GENERAL MEETING.
BUT FOREIGN HOLDING COMPANY WILL NOT BE ABLE TO GIVE LOAN TO ITS SUBSIDIARY COMPANY IN THE FOLLOWING CASES.
IF SUCH FOREIGN COMPANY IS BANKING COMPANY OR INSURANCE COMPANY OR HOUSE FINANCE COMPANY IN THE ORDINRY COURSE OF BUSINESS
IF FOREIGN COMPANY IS ENGAGED IN PROVIDING INFRASTRUCTURAL FACILITIES OR BUSINESS OF FINANCING COMPANY ETC.
ROC REQUIREMENT : THE COMPANY WHO GRANT LOAN IS REQUIRED TO FILE MGT 14 WITHIN 30 DAYS OF BOARD RESOLUTION ( SECTION 179)
BUT FOREIGN HOLDING COMPANY WILL NOT BE ABLE TO GIVE LOAN TO ITS SUBSIDIARY COMPANY IN THE FOLLOWING CASES.
IF SUCH FOREIGN COMPANY IS BANKING COMPANY OR INSURANCE COMPANY OR HOUSE FINANCE COMPANY IN THE ORDINRY COURSE OF BUSINESS
IF FOREIGN COMPANY IS ENGAGED IN PROVIDING INFRASTRUCTURAL FACILITIES OR BUSINESS OF FINANCING COMPANY ETC.
ROC REQUIREMENT : THE COMPANY WHO GRANT LOAN IS REQUIRED TO FILE MGT 14 WITHIN 30 DAYS OF BOARD RESOLUTION ( SECTION 179)
29 November 2016
But will this loan not fall in ECB guidelines??
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
