Section 58A Public Deposits
This query is : Resolved
28 December 2010
QUERY 1:
X, Y and Z are the share holders and directors of XYZ Pvt Ltd
XYZ Pvt Ltd is a holding company of A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
If X, Y and Z gives loan to A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd, will it attract the provisions of 58A or not?
Note: X, Y and Z are not the directors and shareholders A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
QUERY 2:
P, Q and R are the share holders and directors of 10 private companies and partners of a LLP.
Can a LLP give loan to the 10 private companies in which P, Q and R are the shareholders and directors?
On both the above cases, i need to know if there is any Sec 58A violation or any violation under the companies act.
X, Y and Z are the share holders and directors of XYZ Pvt Ltd
XYZ Pvt Ltd is a holding company of A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
If X, Y and Z gives loan to A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd, will it attract the provisions of 58A or not?
Note: X, Y and Z are not the directors and shareholders A Pvt ltd, B Pvt ltd, C Pvt ltd and D Pvt Ltd
QUERY 2:
P, Q and R are the share holders and directors of 10 private companies and partners of a LLP.
Can a LLP give loan to the 10 private companies in which P, Q and R are the shareholders and directors?
On both the above cases, i need to know if there is any Sec 58A violation or any violation under the companies act.
28 December 2010
Answer to Query 1
Yes it will attract Section 58A. Loans from members or directors alone is not considered a "Deposit" as per Companies Acceptance of Deposit Rules, 1975.
Answer to Query 2
Loan by LLP to 10 private companies will be a "Deposit".
Yes it will attract Section 58A. Loans from members or directors alone is not considered a "Deposit" as per Companies Acceptance of Deposit Rules, 1975.
Answer to Query 2
Loan by LLP to 10 private companies will be a "Deposit".
28 December 2010
Dear Jayashree,
Thanks a lot for the assistance..
But what is the Limit for an LLP and how many Pvt Company it can invest which will not be considered as Deposit??
Thanks a lot for the assistance..
But what is the Limit for an LLP and how many Pvt Company it can invest which will not be considered as Deposit??
28 December 2010
Dear Mohammad,
Loan by LLP to a private company will be considered a deposit.
Loan by LLP to a private company will be considered a deposit.
Message likes :
1 times
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?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
