Deemed dividend
This query is : Resolved
Souvik Kumar Ghosh
(Querist)
31 October 2012
Please inform the tax implications of the following under the ambit of Sec-2(22)(e) wit logic & relevant case law, if possible:
1. A pvt ltd co is paying PF & ESI of a partnership firm i which two of its directors hold 50% voting power. The company is also a partner in the said firm. The partnership firm is reimburshing the suc to the company.
2. A Pvt Co company makes payment on behalf of shareolder olding more than 10% voting power & such amount is utilised for the benefit of such shareholder & spouse.
3. A Pvt ltd co who is engaged in the money lending business gives any advance to a person where such advance is utilised for the individual benefit of one of its shareholder holding more than 10% voting power.
Regards
1. A pvt ltd co is paying PF & ESI of a partnership firm i which two of its directors hold 50% voting power. The company is also a partner in the said firm. The partnership firm is reimburshing the suc to the company.
2. A Pvt Co company makes payment on behalf of shareolder olding more than 10% voting power & such amount is utilised for the benefit of such shareholder & spouse.
3. A Pvt ltd co who is engaged in the money lending business gives any advance to a person where such advance is utilised for the individual benefit of one of its shareholder holding more than 10% voting power.
Regards
CA VISHNU GAVKARE
(Expert)
01 November 2012
1 & 2 case its deemed dividend. in case 3 its normal business of company to lend money hence not taxable.
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