TMI BlogApplicable of Section 185 for intercorporate depositX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, we need your kind advice from the following facts: 1. we have an intercompany deposit of Rs.5 cr 2. both the company is a Limited company (not a Pvt.Ltd Co.) 3. one director is common for both the companies is the Section 185-loan to director etc. applicable in our case? If applicable what will be procedures to stay safe from the statutory point view? Kind Regards, BCB - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Debtosh Dey - The Reply = Inter corporate deposit does not automatically become loan to director u/s 185 even if one or more directors are common. - Reply By sanjeev bajaj - The Reply = sec 185 is applicable in this case, please read explanation. - Reply By Debtosh Dey - The Reply = Inter-corporate loan attracts sec 185 only if the borrower is a holding co or pvt co with a common dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ector or a body corporate where lender controls atleast 25 percent voting power or otherwise directions/ instructions. In the instant case, the borrower is not a pvt co. It needs to be seen whether any of the other conditions apply (These are not stated in the query). If it applies, then sec 185 is attracted. Otherwise not. Debtosh Dey - Applicable of Section 185 for intercorporate deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Query Started By: - Bhairob Chandra Bor Dated:- 6-5-2014 Corporate Laws / SEBI / LLP - Got 3 Replies - Companies Law - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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