Related Company Transaction
This query is : Resolved
23 February 2010
we are having two private ltd co. one is having 50:50% partnership and one is complete our holding .
now our complete holding co. is opening a new hotel and on deputation basis we a 50:50% partnership concern is sending our employees on deputation basis for certain period.
for this period we bill thier entire salary component on prorata basis to complete holding co and accordingly take the per diem charges from them and pay to concerned employees.
please advice is there any law applicable to the above case, whether in corporate law or income tax.
now our complete holding co. is opening a new hotel and on deputation basis we a 50:50% partnership concern is sending our employees on deputation basis for certain period.
for this period we bill thier entire salary component on prorata basis to complete holding co and accordingly take the per diem charges from them and pay to concerned employees.
please advice is there any law applicable to the above case, whether in corporate law or income tax.
23 February 2010
I presume you are not acting as a labour supply contractor. If you are acting as a labour supply contractor, then rules pertaining to PF, ESI, service tax would be applicable.
Under corporate law, the transaction has to be recorded in the register maintained under SEctio 301. This also has to be disclosed under AS-18.
Under Income Tax, there would be no problem so long as the transaction is done at arms length basis.
Under corporate law, the transaction has to be recorded in the register maintained under SEctio 301. This also has to be disclosed under AS-18.
Under Income Tax, there would be no problem so long as the transaction is done at arms length basis.
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- CLOSING STOCK QUERY
- Taxability of credit in canara bank ET & T section (NRO)
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
