Unsecured loan from pvt ltd
nitin bagadia (employee) (36 Points)
09 September 2012nitin bagadia (employee) (36 Points)
09 September 2012
CA D R P
(Chartered Accountant)
(313 Points)
Replied 09 September 2012
"To earn interest" if u are giving loan then your objective of business has to be checked.
A PVT LTD CAN GIVE SUCH LOANS .. BUT IT SHOULD BE IN IT'S ARTICLES OF ASSOCIATION TO GIVE LOANS TO EARN INTEREST OUT OF EXCESS LIQUIDITY. IT'S LIKE INVESTMENT ONLY....
THANK YOU,
DRP
financehub
(MBA)
(27 Points)
Replied 09 September 2012
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Muthukumar
(Chartered Accountant)
(78 Points)
Replied 09 September 2012
Yes you can...provided that transaction is not a sham transaction and if the individual is the director of the company... be careful with the deemed dividend provisions in the hands of the directors...
nitin bagadia
(employee)
(36 Points)
Replied 09 September 2012
Sunil
(Internal Auditor)
(334 Points)
Replied 10 September 2012
3 things has to be analysed in the question. One is its object clause. Two whether there is any restriction in the Money Lending Act and three whether the provision of NBFC is applicable. Initially it should be analysed whether the articles included such an object clause. Then it should be verified any restriction in money lenders or other similar acts. Then also check whether the provisions of NBFC will attract or not
nitin bagadia
(employee)
(36 Points)
Replied 10 September 2012
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India