nuli swami ayyappa (ARTICLE STUDENT) 26 November 2013

Unsecured loans

Does sec269SS/T applicable in case of Holding and Subsidiary company?i.e If a company "X" holds 98% shares in another company "Y" ,(Here in after referred as Subsidiary company),Then Can "Y" accept a fresh loan of rs 2000000(2Lakhs) in CASH from company "X" ?Plead an early reply! Thanks in advance

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R RAJAGOPALAN (ADVOCATE) 29 November 2013

QUERY: Is sec269SS/T applicable in case of Holding and Subsidiary company?i.e If a company "X" holds 98% shares in another company "Y" ,(Here in after referred as Subsidiary company),Then Can "Y" accept a fresh loan of rs 2000000(2Lakhs) inCASH from company "X" ?

REPLY: No, both being, in law, different 'persons', and not being exempted by law.

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