Dear Experts,
A newly incorporated Pvt Ltd Company had taken interest free advances for from its holding company during 2012-13. the advance was taken for meeting its expenses. The Pvt Ltd Company was engaged in sourcing long term coal supply for upcoming power plant of fellow subsidiary. The plant is yet to be operational.
Whether the amount shall be treated as deposit under the Companies Act 2013.
Kindly opine.
Shyam
Interest-Free Advances for Coal Supply Not Classified as Deposits Under Companies Act 2013 A newly incorporated private limited company received interest-free advances from its holding company in 2012-13 to cover expenses related to sourcing long-term coal supply for a subsidiary's future power plant. The plant is not yet operational. The query seeks clarification on whether these advances should be classified as deposits under the Companies Act 2013. Respondents agree that the advances should be recorded as loans and advances in the balance sheet, not as deposits, noting that the terms 'advance' and 'deposit' are contradictory. (AI Summary)
TaxTMI 
TaxTMI 
