sec297
This query is : Resolved
Guest
Guest
(Querist)
17 December 2010
A private company having paid up capital of rs. 1 crore enters into transaction with another private co. and they have common directors so they are related parties. the another or opposite party is having paid up of less than 1 crore. so i think as per section 297 of Companies Act, 1956 if a private company having paid up capital of Rs. One Crore or more enters into a transaction with another private company whose paid up capital is less than Rs. One Crore, then former company needs to take prior Central government approval and board consent before entering into the said transaction/arrangement.But no such action took place.
so kindly advice me the consequences. Is it falls under Condonation for delay or Compounding of offences???????????
so kindly advice me the consequences. Is it falls under Condonation for delay or Compounding of offences???????????
17 December 2010
Your case falls under Section 297 for which CG (delegated to RD) approval is required.
You have to apply to RD for approval of related party transactions.
However it's a case of continuing offence, hence first apply for compounding u/s 621A. Once compounding application is made, you can apply for approval simultaneously.
You have to apply to RD for approval of related party transactions.
However it's a case of continuing offence, hence first apply for compounding u/s 621A. Once compounding application is made, you can apply for approval simultaneously.
17 December 2010
Hi..
U have correctly interpreted the provisions of section 297 of the Companies Act, 1956.
U will have to go for compounding of offence.
God Bless
Udit Sharma
U have correctly interpreted the provisions of section 297 of the Companies Act, 1956.
U will have to go for compounding of offence.
God Bless
Udit Sharma
17 December 2010
Hi! One thing I forget. Section 297 is attracted only for entering into contracts for sale, purchase or supply of goods, materials or services. If the transaction is other than this viz., giving loans, etc. no need for CG approval.
17 December 2010
Penalty can be imposed u/s 629A and the same is compoundable u/s 621A. Then act according to the 1st reply otherwise the contract will become void.
17 December 2010
If the purchase of goods & materials from the company, or the sale of goods and materials to the company, by any director, relatives, firm, partner or private limited company for CASH at prevailing market price, then no needs to take prior Central government approval and board consent before entering into the said transaction/arrangement.
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
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
