Can a pvt ltd company borrow loan from third party

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2014 Dear All,

I have doubt regarding a registered pvt ltd company can borrow unsecured loan from third party, if its allowable interest payable to them how to treat in accounting.

@VaibhavJ

@VaibhavJ (Expert)
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14 October 2014 It states that No company whether public or private can accept deposit from anybody without complying with the provisions mentioned in Section 73. Clause (viii) of Rule 2(c) specifically excludes loans from directors from the purview of deposit definition if the director gives a declaration that the amount he is lending is not out of borrowed funds.

So subject to Section 73 loans can be availed.

@VaibhavJ

@VaibhavJ (Expert)
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14 October 2014 Refer: http://taxguru.in/company-law/provisions-companies-act-2013-pertaining-acceptance-giving-loans-company.html

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