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Cobweb of sister concerns

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Jayanta Bandyopadhyay

414 Points Posted on 29 February 2024

Respected Sir

A family owns a cobweb of complex Chain of multiple LLPs & a single Pvt Ltd Co. This Co owns Factory and manufactures equipments and sells only to family owned LLPs, who in turn export. At back end, Ltd Co raises Invoices on LLPs, who makes a big kill in export market. Profit margin is

3-400%. Rarely Customs want to see Purchasing Invoices from LLPs.

Is there any accounting, Customs, taxation trap/ loose ends?

Kindly guide

Regards

Replies (2)

Quick Summary

A family operates a complex network of LLPs and a private limited company manufacturing equipment. The private limited company sells to the family-owned LLPs, who then export with significant profit margins. This setup raises questions about potential accounting, customs, and taxation pitfalls, particularly when customs authorities scrutinise purchasing invoices from the LLPs.