Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

MBP2 loans register

210 views 1 replies

Kavita R

Service

183 Points Joined December 2010

If ABC company has paid the ROC charges of XYZ co., where ABC is a related party kindly clarify the below:

1) will this transaction be considered as RPT ?

2) will this be entered in the MBP -2 as loan taken ?

3) prior board approval for the transaction is required ?

Thanks in advance.

Replies (1)

Chirag

Professional

1979 Points Joined December 2017

You have to check with related party definition

Also check whether Transaction is in OCB and ALP ,if all conditions are satisfied then no Approval required ,if it's not a related party then check which section is attracted 185 or 186 ,if these sections are attracting, check Company is complying with the condition of exemption as per not.dated 5 June 2015 .If yes ,then no issue else check it's within limits or take board or shareholders approval