Difference between Related Party Transactions & Inter-Corporate Deposits

company cuet_pg intermediate comparison

Suno, main toh abhi tak confuse hai between RPT aur IDC. Koi bhai ya behen bataayein kya hai difference? RPT mein company ne kisi related party se transaction ki, jab ki IDC mein company ne kisi corporate entity se deposit kiya. Par kya agar related party kaafi bada corporate entity hai, to kya hai difference? Aur IDC mein bhi company ne related party se transaction ki, to kya yeh RPT hi nahi hai?

Pehle se hi confused hoon, to aao aap log apne expert comments dena.

2 comments

2 Comments

Sign in to join the discussion.
Harini ยท Judiciary Aspirant

Chalo, let's break it down. Related Party Transactions (RPTs) refer to dealings between a company and its related parties, like directors, subsidiaries, etc., involving material transactions. Inter-Corporate Deposits (ICDs), on the other hand, are loans or deposits between companies. Key difference is RPTs involve more than just financial transactions, while ICDs are purely monetary in nature.

Bharat ยท CLAT Prep

"Related Party Transactions aur Inter-Corporate Deposits ki comparison ek complex topic hai. Lekin yeh example saakar hai: RPTs mein, group company se ek company ko koi benefit milta hai, toh ICD mein, group company ka bank account se bank account mein paise transfer hote hain.