29 June 2015
one of my client has a 1) proprietorship business i.e. educational institute and 2) a pvt company.
He wants to register a society with 6 other members through which client wants to provide educational training at a very low cost (maintenance cost). But he wants to show like this:
He will offer the services to the public on the name of society (only objective is to reach large public) and charge at very very cheap rate but programs will be delivered by his proprietorship business. So society will collect maintenance charges from the trainees and pay the same as fees to the proprietorship business i.e. the client himself.
Is this correct under laws and income tax point of view.
CAclubindia
