Deemed dividend
This query is : Resolved
23 February 2014
1) X is a private limited company.
2) The company gave loan to Y another private limited company.
3) X-company has 85% shareholding in Y (private limited company).
4) Whether the loan given by X-company to Y is deemed dividend or not?
5) If so, in whose hands the amount to be taxed?
2) The company gave loan to Y another private limited company.
3) X-company has 85% shareholding in Y (private limited company).
4) Whether the loan given by X-company to Y is deemed dividend or not?
5) If so, in whose hands the amount to be taxed?
23 February 2014
well for deemed dividend, loan should be given to someone who owns shares in your company. so normally loans given to subsidiary should not attract deemed dividend provided that no other shareholder of the company owns minimum shares required ie 10% of the holding company and 20% of the subsidiary. In such a case deemed dividend is taxed in the hands of such sharedholder.
In your case if the company itself owns the 85% of the subsidiary, no deemed dividend should trigger
In your case if the company itself owns the 85% of the subsidiary, no deemed dividend should trigger
23 February 2014
Thank you for the wonderful advice.
23 February 2014
you are welcome Rao.....
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
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- Agriculture income or business income
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
