Section applicable

This query is : Resolved

CA Neha Jain (Querist)
Follow

02 February 2012 I would like to konw which section in IT & Comapnies Act would be applicable for taking and giving unsecured loans by limited company to pvt ltd co.
Thnkx in advance.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

02 February 2012 Section 372A of the Companies Act, 1956 deals with intercorporate Loan, Investment, Guarantee and Securities in connection with loan

Message likes : 1 times

CA Neha Jain

CA Neha Jain (Querist)
Follow

03 February 2012 Bt Sir, Sec. 372A of Companies Act covers only giving of loans to intercorporate.it doesnt covers taking of loans.

Upgrade to CAclubindia Pro. Subscribe Now!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

03 February 2012 A public and private limited company can take loan from other company and body corporate and the same would be covered under section 372A as an inter corporate loan

Jagdish Bhalia

Jagdish Bhalia (Expert)
Follow

04 February 2012 Pls also read section 2(22)(e) of the Income tax Act, 1961