Dear Professionals,
Kindly provide me your valuable suggestion on the following issue-
If a pvt. ltd co gives a loan to anothe pvt. ltd co on interest, in both companies one of the directors is common and hence it is a related party transaction u/s 297 of the Companies Act, 1956.
Section 297 includes services in its ambit. In my view, this loan comes under servies because co will charge interest thereon. This transaction not only occures once or twice rather it is recurring in nature in the comany.
Kindly throw light on the above.
Look forward to your kind reply.
Regards,
Harvinder
CAclubindia
