SWARUP VYAS (9 Points)
13 September 2018I am a director of a pvt ltd company and want to take a loan from my company?
please explain me, how to show it in the books of accounts of the company
any tax implications on company as well as on director
any legal or statutory compliance to be fulfilled
Ashwin Kumar
(1234 Points)
Replied 13 September 2018
Company cannot give loan to its own directors,,,,if taken any any other form will be treated as deemed dividend and is taxable in the ssame year.
SWARUP VYAS
(9 Points)
Replied 13 September 2018
Ashwin Kumar
(1234 Points)
Replied 13 September 2018
please refer section 185 of the companies act 2013. it prohibits a company from providing loan, guarantee or security to any of its directors. So A COMPANY CANNOT PROVIDE LOAN TO ITS DIRECTOR.
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 13 September 2018
Santhosh Gundinahole
(Studnet)
(347 Points)
Replied 13 September 2018
Jatin Bajaj
(CS)
(2930 Points)
Replied 13 September 2018
As per the Provisions of the Companies Act 2013, the Company cannot give loan directly to the Director but can give loan to the private Company in which there is common director or to body corporate in which 25 percent or more of the holding is held by such Director.
But if the following conditions are satisfied, the privateCompany can give Loan to Director
1. No other body corporate has invested in that body corporate.
2. Amount borrowed from bank or financial institution is less than twice the paid up capital or 50 crore whichever is less.
3. The Company has not defaulted in the payment of Loan
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
2. The amount of loan
CAclubindia
