Deemed Dividend
This query is : Resolved
AK Venkatesh
(Querist)
12 July 2010
Dear all a company paid online tax on behalf of its Holding company as it had net banking facility & subsequently recovered the money from it. Will it be taxed as deemed dividend . Many thanks in advance
Aditya Maheshwari
(Expert)
12 July 2010
It cannot be termed as any loans or advances for the purpose of that section and the provision should not be applicable as it is a normal business transaction.
Next time take a cheque of the date on which epayment is being made though cheque is deposited later so that there is no advance of money from subsidiary to holding and the provisions will not apply on the same.
Also section 2(22)(e) not applicable it is a wholly owned subsidiary of the holding company.
Next time take a cheque of the date on which epayment is being made though cheque is deposited later so that there is no advance of money from subsidiary to holding and the provisions will not apply on the same.
Also section 2(22)(e) not applicable it is a wholly owned subsidiary of the holding company.
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