banner_ad

Advance paid against the project

This query is : Resolved 
Profile Image

Profile Image

(Querist)
29 May 2010 I am doing audit of a pvt company,Company has been paying to its group company as advance against the project, and there is no as such any agreement regarding this. This is only a inter company fund mnagement
is there any dislouser requirement?
Profile Image

Abhishek

Profile Image

Abhishek (Expert)
29 May 2010 Payer: Compnay A
Payee: Company B

The amount paid by A to B cannot be treated as an advance, since the project is of B and not A, it can be treated as a Secured/Unsecured Loan based on the circumstance of the case;

Even though both the companies are of the same group one can not say that there should not be any any agreement, each company has its seperate entity and treat all the transactions in similar parlance so there should be an agreement;

Disclosure will come in Related Party AS-18 of the transactions made during the period.

Feel free to make further discussion

Thank You
Profile Image

CA. BIJENDER KR. BANSAL

Profile Image

CA. BIJENDER KR. BANSAL (Expert)
29 May 2010 In this case, ITO can treat it deemed dividend u/s 2(22)(e).
Profile Image

anand

Profile Image

anand (Querist)
29 May 2010 Thanks

Is there any company law requirement ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details