Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Funds Transferred Between Related Parties

This query is : Resolved 

Dear Sir,
kindly advise us as to any tax implications in following transactions
1. we have a trustee company X and trust Y
2. trustee company is Pvt Ltd Co
3. we have received expense invoice from in the name of trust but payment made through trustee company by mistakenly
4. we have decided to trust will pay to trustee company same amount as trustee Co. has paid on behalf of trust.

Will it (funds transferred as per point no 4 above) legitimate as per taxation laws ?


Yes, it's legitimate as per taxation laws.


whether there is requirement of ratification in board report of trustee company (pvt ltd)


No ratification required as money is received back.

sir money is received back but invoice mentioned the name of trust not company. but company has paid amount and recovered from trust. we have accounted invoice in trust and payment adjusted through adjustment entry between trust and trusty company. Still ratification nit required in the board meeting of trustee company ?

Ratification not required but inform the board.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries