Transaction Between 2 Sister Concerns
This query is : Resolved
Saurabh Masih
(Querist)
13 May 2010
I want to know whether the transaction between 2 sister concern companies both are private limited are allowed or not
13 May 2010
There is no limit for the transactions and the amount involved between two sisters concern... But there are some provisions in income tax which is affected by it.... So sometime have to limit the amount to be safe from IT....
taxindiaconnect
(Expert)
13 May 2010
There is no limits in Income tax on transaction between two sister concerns. Only issue I see is that the discloser of revenue expenditure paid to sister concern is required under section 40(a)(2)(b)of IT Act. The ITO / AO has power to examine the transaction whether this is correct or excessive. if he finds excessive may disallow the expenditure in the hands of the company which has claimed the expenditure.
Mahesh Babu
(Expert)
13 May 2010
Agree with Rajesh.
if the transaction is not related to Section 40(a)(2)(b), then take care of Section 2(22)(e).
if the transaction is not related to Section 40(a)(2)(b), then take care of Section 2(22)(e).
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
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
