Advance given to director for purchase of property

This query is : Resolved

RAJESH SHARMA (Querist)
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02 August 2015 If the advance has been given to director of company for purchase of property. Whether it will treated as loan to director under companies act 2013?

Pratik Shah

Pratik Shah (Expert)
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03 August 2015 Who is purchasing a property? Is it Company purchasing it from Director? If this is the case, then it won't be termed as Loan to Director.

But if above is not the case, then it will be termed as Loan to Directors.

However, as per Notification dated 05th June, Pvt co has been given an exemption for section 185 subject to certain limits.

Please refer the same.