3CD & 40A(2)(b) Payments

Somebody pls clarify

Company X has  49.5% Shareholding in Y Ltd & A foreign company holds 50% . Company X also holds 74% in Z ltd & foreign company has 26% . The directors of Z ltd are directors in Y Ltd . Y ltd has paid some consultancy fees to Z Ltd . whether this transcation to be reported in Form 3CD of  Y ltd  ???

 

Replies (1)

AS PER MY OPINION

 

THE Y LTD CAN SHOW IT

 

AS ONLY UNREASONABLE AMOUNT OR EXCESSIVE AMOUNT ARE DISALLOWED AS PER SEC 40A (2)

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