Wether a private company can take loan from freinds and relatives? If repaid properly whether and contravetion on section 58 in this case.
Sonal Saxena (Accounts Manager) (31 Points)
20 May 2010Wether a private company can take loan from freinds and relatives? If repaid properly whether and contravetion on section 58 in this case.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 20 May 2010
Dear Sonal,
Under section 3(1)(iii)(d) Private company can accept deposiit only from its members, directors or their relatives.
However, under Acceptance of Deposit Rules, 1975, Deposit accepted by a Private Company as above is EXEMPTED DEPOSIT.
Therefore, it would treated as unsecured loans.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
