classification of Shares held of group companies
This query is : Resolved
26 May 2010
a Pvt Ltd. co. which is regd. as an NBFC is classifying its investment in Group companies which are all pvt ltd companies as Stock in trade, is this treatment correct?
this is more so when we know that shares of a Pvt co are not tradeable/transferable
this is more so when we know that shares of a Pvt co are not tradeable/transferable
26 May 2010
Yes, the treatment is correct and followed as a matter of practice by most NBFC and also allowed by RBI.
26 May 2010
IN MY OPINION THIS TREATMENT IS NOT CORRECT AND IT SHOULD BE SHOWN AS INVESTMENT.
SHOWING INVESTMENT IS MUCH BETTER. IF YOU SHOW IT AS STOCK-IN-TRADE THEN ANY INCOME ARISING IN FUTURE WILL BE TREATED AS BUSINESS INCOME.
SHOWING INVESTMENT IS MUCH BETTER. IF YOU SHOW IT AS STOCK-IN-TRADE THEN ANY INCOME ARISING IN FUTURE WILL BE TREATED AS BUSINESS INCOME.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Last year TDS Claim
- Long Term Service award taxability in hands of company
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- STCG FOR GOLD ETFs
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
