section 297
This query is : Resolved
11 February 2010
Hi There
Need a clarification in this case :
1. A Ltd and B Private Ltd have two common directors with more than 2% shareholding in both companies. B( P) Ltd is in travel agency business. A Ltd purchases air tickets for its common director through B(p) Ltd and makes payment by cheque. Is it a contract covered by section 297 of the Companies Act 1956?
2. A Ltd and B Private Ltd have one common director with more than 2% shareholding in both companies. B( P) Ltd is a share broking company. A Ltd buys & sells shares of different companies through B (p) Ltd and makes payment by cheque. B (p) Ltd charges usual brokerage. Is it a contract covered by section 297 of the Companies Act 1956?
Thank You ...
Need a clarification in this case :
1. A Ltd and B Private Ltd have two common directors with more than 2% shareholding in both companies. B( P) Ltd is in travel agency business. A Ltd purchases air tickets for its common director through B(p) Ltd and makes payment by cheque. Is it a contract covered by section 297 of the Companies Act 1956?
2. A Ltd and B Private Ltd have one common director with more than 2% shareholding in both companies. B( P) Ltd is a share broking company. A Ltd buys & sells shares of different companies through B (p) Ltd and makes payment by cheque. B (p) Ltd charges usual brokerage. Is it a contract covered by section 297 of the Companies Act 1956?
Thank You ...
11 February 2010
Dear santosh
Check the applicability of Sec 297.
Check the applicability of Sec 297.
12 February 2010
Sir i am confused that is y i am asking you people for clarification
12 February 2010
Dear Santhosh ji,
Any transaction done at market rate is not covered under this section.
Regards
Any transaction done at market rate is not covered under this section.
Regards
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
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS 194-T applicability
- Tds on commission charges
- Applicability of GST on Salary Reimbursement Component
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Dep. as per companies act
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- CHECK RELATED
- New GST registration for new place of business.
- Tax rate change regarding
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- 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?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
Quick Links
Featured
11 September 2026
Audit Executive
RBSM Corporate Advisors Private Limited
Pune
CA
View Details
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
CCI
Pro
CAclubindia
