Rajesh Poddar (Chartered Accountant) (321 Points)
01 January 2010Dear Friends,
Can a Pvt. Ltd.Company give loan to partnership firm and charge interest for the same.
Any restriction under the IT act or Co. law ?
Please Reply
Rajesh Poddar
Amir
(Learner)
(4016 Points)
Replied 01 January 2010
I DONT AGREE WITH SUNIL THERE IS NO SUCH CONDITION ONLY THING TO BE KEPT IN MIND IS SEC 2(22)(e) DOES NOT GETS ATTRACTED...
shailendra
(C.A. FINAL)
(189 Points)
Replied 01 January 2010
I agree with Amir sir, but apart from income tax act there are many other restrictions in companies act 1956, like these type of transactions are to be reported in sec 301 of companies act and also conditions laid down in sec 372 & 372A should be satisfied.
Amir
(Learner)
(4016 Points)
Replied 03 January 2010
Dear Shailendra u R RITE REGARDING SEC 301 BUT SEC 372 A IS NOT APPLICABLE ON PRIVATE COMPANIES...(I GUESS SEC 372 WAS REPLACED BY SEC 372 A)
shailendra
(C.A. FINAL)
(189 Points)
Replied 03 January 2010
Dear Amir sir,
Sec 372 refers to the purchase of shares of another companies, however sec 372A refers to the intercorporate loan and investment.
Here Mr. Rajesh has asked about the loan so i have quoted here section 372A instead of sec 372.
mehul
(CA)
(29 Points)
Replied 11 January 2010
There is no specific restriction for PRIVATE LTD co. in COMPANIES ACT as well as INCOE TAX. Amir is absolutely right
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