Deemed dividend

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 April 2012 dear sir,
can M/s ABC private limited borrow fund from M/s XYZ private limited in following situation:
1.Mr. X Have a 25% share in XYZ Private limited and 21% in ABC private limited.

2. XYZ private limited also have a 15-20% share in ABC Private limited.

3. XYZ private limited have a credit balance in profit and loss account of Rs. 5 cr.


03 April 2012 Assuming that there are sufficient accumulated profits, in all the scenarios deemed dividend is applicable.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 April 2012 Thank You sir


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