LIVE GST Certification Course by CA Arun Chhajer. Register Now!!

SBO Declaration related Query

Gargi (Company Secretary) (22 Points)

24 January 2024

X Pvt. Ltd. is reporting Company in which Y Pvt.Ltd. holds 50% of share. A holds 40% direct share in Y pvt. Ltd. , do A needs to give SBO declaration to X Pvt. Ltd. Kindly guide.

Reply
Follow
Share

1 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 24 January 2024

In following the SBO declaration is required.
holds indirectly, or together with any direct holdings, not less than ten per cent of the shares;
holds indirectly, or together with any direct holdings, not less than ten per cent of the voting rights in the shares;
has the right to receive or participate in not less than ten per cent of the total distributable dividend, or any other distribution, in a financial year through indirect holdings alone, or together with any direct holdings;
has the right to exercise, or actually exercises, significant influence or control, in any manner other than through direct holdings alone.