( Querist )
26 September 2010
I want to know whether there is STILL violation of Section 293A of Co.'s Act,1956 where, ABC co. Pvt.Ltd(which is not completed 3 financial years since incorporation & is a non-Govt.Co.) has paid to a political party on behalf of XYZ Co.Pvt.Ltd (which has completed more than 4 financial years),in such case whether ABC Co.Pvt.Ltd has voliated the said provision of the act?
IN the books of ABC CO.PVT.LTd,accounting entry
XYZ Co.Pvt.Ltd A/c Dr. Rs. 50,00,000.00
To Bank A/c Rs.50,00,000.00
Being chq. drawn in favour of political party,as the said amt.is paid on behalf of XYZ Co.PVtLTD.
In the books of XYZ co.Pvt.LTd,accounting entry
Donation A/c Dr. Rs. 50,00,000.00
To ABC Co.Pvt.LTd 50,00,000
Being paid donation to political party ,the said amt is paid by ABC co,pvt,ltd on behalf of the company