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Intresting question related a pvt ltd compnay

lexbery (d) (227 Points)

06 January 2011

i have opened a new pvt ltd company,with i. my father and mother as its only director,with a share capital of 10 lac in july but startd biz from november only

i want to ask 4 questions:-

1. i beleive my company cant give loan to any 1,but can it take loan from a outsider or NBFC?

2.take for example i have shares in my personal name,after pledging it in bank i get a OD of 20lac,now can i use this fund in my pvt ltd compnay?

3.i didnt pay advance tax in deecember,how to calculte it and how much to pay in march(what are the expenses to deduct from gp to get the np)

4.when to pay salary to directors and how is it calculated?(i havnt made any payment till date)

please help me as i am not xpert in tax related to pvt ltd co

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10 Replies

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 06 January 2011

Originally posted by : aditya agarwal
	i have opened a new pvt ltd company,with i. my father and mother as its only director,with a share capital of 10 lac in july but startd biz from november only i want to ask 4 questions:- 1. i beleive my company cant give loan to any 1,but can it take loan from a outsider or NBFC? 2.take for example i have shares in my personal name,after pledging it in bank i get a OD of 20lac,now can i use this fund in my pvt ltd compnay? 3.i didnt pay advance tax in deecember,how to calculte it and how much to pay in march(what are the expenses to deduct from gp to get the np) 4.when to pay salary to directors and how is it calculated?(i havnt made any payment till date) please help me as i am not xpert in tax related to pvt ltd co

1) why cant u give loan to anyone? restrictions are there but no prohibition

2) yes, ur personal funds can be used in company, it will be unsecured loan to company repayable to directors

3) 100 % of tax to be paid before march, or else interest u/s 234B/C may be levied (IT Act)

4) salary to directors? u decide, no rules for that!!!

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CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 06 January 2011

Originally posted by : aditya agarwal
	i have opened a new pvt ltd company,with i. my father and mother as its only director,with a share capital of 10 lac in july but startd biz from november only i want to ask 4 questions:- 1. i beleive my company cant give loan to any 1,but can it take loan from a outsider or NBFC? 2.take for example i have shares in my personal name,after pledging it in bank i get a OD of 20lac,now can i use this fund in my pvt ltd compnay? 3.i didnt pay advance tax in deecember,how to calculte it and how much to pay in march(what are the expenses to deduct from gp to get the np) 4.when to pay salary to directors and how is it calculated?(i havnt made any payment till date) please help me as i am not xpert in tax related to pvt ltd co

Questions are basics, not interesting as u have mentioned

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lexbery (d) (227 Points)
Replied 06 January 2011

well i think you know how ca create pvt ltd co...its "that type" of pvt ltd co,my ca told me that my pvt ltd co is not a nbfc as its share capital is 10 lac not 2 crore(as that much share capital is required 2 make a nbfc)so my co cant take loan from outsider

regarding advance tax,how to judge my future expected earning as it a new co and its 1st yr of operation.

he said salry must be paid to directors every month depending of eaning after duducting TDS

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 07 January 2011

Sunny-very precise answers.

However with regard to loan from outsiders - yes there are restrictions. Only loans taken from directors or relative of directors or members are not treated as deposits. Loans from others will be treated as deposits attracting Section 58A of the Companies Act, 1956. However this restriction does not cover loans taken from NBFCs or Banks. You are free to go for loans from NBFCs/Banks.

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 07 January 2011

U can pay commission and sitting fees to director, Salary is paid to MD and Whole time director only as these two are in wholetime employment of the company.

Here , Director means independent director

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Sudhir Garg (Service) (236 Points)
Replied 07 January 2011

Dear Aditi

Please note replies against the queries asked.

1. i beleive my company cant give loan to any 1,but can it take loan from a outsider or NBFC?

No, Your company can give loans to anyone but can't take loan from others except directors, members or their relative. The list of reslatives is very wide. you may please check the same with your CA. Further for infusing loan to your company, you may take loan in your or your relative account for further investing in your company.

2.take for example i have shares in my personal name,after pledging it in bank i get a OD of 20lac,now can i use this fund in my pvt ltd compnay?Yes.

3.i didnt pay advance tax in deecember,how to calculte it and how much to pay in march(what are the expenses to deduct from gp to get the np) By March your company need to pay all taxes. By that time, your company reaches to financial year end where your company profit / Loss can easily be determined. All operational or company related expenses can be deducted depending upon the nature of business. Your CA being in control of your company information can better guide you.

4.when to pay salary to directors and how is it calculated?(i havnt made any payment till date). es salary can be paid to whole time employed directors others can get it by way of sitting fees / commission.

Regards/ Sudhir

1 Like

lexbery (d) (227 Points)
Replied 07 January 2011

thanks to sunny and garg.it has cleard my concept.

as per the new guidlines,a non nbfc pvt ltd co cant buyback shares,what is its implication?how to tackle it?

a information-i,my father and mother are the only 3 subscribers to the shares of the company and all 3 of us are non-executive independent directors of the company,so how to pay salary commision or sittting fee which ever is applicable.

Devi Prasad Ruia (Others) (39 Points)
Replied 08 January 2011

CS Ekta
Company Secretary
[ Scorecard : 279]

Posted On 09 November 2009 at 22:14

Loan from Directors by a Public Co. will not be considered as Public Deposit under sec 58A.

Rule 2 Clause IX of the Companies (Acceptance of Deposits) Rules, 1975 provides that the term deposit does not include:

any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from a relative of a director or its member by a private company :

Provided that the director, relative of a director or member, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others".

Please refer this link which will clear any doubt

https://www.thehindubusinessline.com/bline/2004/03/19/stories/2004031900620400.htm

skjadvt (Tenancey expert. ) (49 Points)
Replied 09 January 2011

We want to form a limited liability firm with min capital , whether LLP is better or Pvt Ltd cp. Please suggest.

vikal (article) (22 Points)
Replied 12 May 2011

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