A company has laken loan on CAR, whether they are required to register it?
Secured car loan
(Guest)
2 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 16 May 2013
Firstly, the company has to check whether its MOA authorises it to borrow any loans. If yes, then the secured loans taken shall be entered into the books of accounts. Also the charge created on assets which are mortgaged for the secured loan should be registered with ROC u/s 125 of the Companies Act, 1956.
Regards,
Devendra Kulkarni
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 21 May 2013
Yes, a charge is being created on the property of the company (i.e. car) and hence charge has to be registered u/s 125. Some banks do not insist for registration of charge on car loan. However, it is the responsibility of the company to comply with Section 125.
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