Relationship between society and proprietorship / pvt co.
This query is : Resolved
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.
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.
Rupesh Jain
(Expert)
02 July 2015
THERE IS NO PROBLEMS BUT ITS FACE PROBLEM WHEN ITS IS RELATED PARTY TRANSACTION.
AND UNDER INCOME TAX ASSESSMENT YOU MAY FACE PROBLEM.
AND UNDER INCOME TAX ASSESSMENT YOU MAY FACE PROBLEM.
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
