Inter company transaction

782 views 6 replies

we are transfering cash by bank to our partnership firm and other pvt ltd companies.

we are pvt ltd.

any tax consequences?

we get it back from bank too...

Replies (6)

pls can you explain the question

 as per my understanding you are working in a pvt ltd company and you are taken cash from the PRTNERSHIP FIRM.

ya we take and give cash thrugh bank from p'ship firm where one of sh.holder is major partner

we open unsec loan account of such firm

as per Sec 269ss and 269T any loan taken or repaid otherthan account payee cheque and if exceeds Rs20,000 per annum. the total amount is disallowed under income tax Act.

 

pls avoid the cash loans.

is deemed div affects??

there is no deemed dividend. beacuse in your case company has taken the loan.

the Sec 2(22) is applicable for comapies only not to firm

pls refer below for deemed dividend

“dividend includes—

    (a)  any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company ;

    (b)  any distribution to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any form, whether with or without interest, and any distribution to its preference shareholders of shares by way of bonus, to the extent to which the company possesses accumulated profits, whether capitalised or not ;

    (c)  any distribution made to the shareholders of a company on its liquidation, to the extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not ;

    (d)  any distribution to its shareholders by a company on the reduction of its capital, to the extent to which the company possesses accumulated profits  which arose after the end of the previous year ending next before the 1st day of April, 1933, whether such accumulated profits have been capitalised or not ;

    (e)  any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) [made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest (hereafter in this clause referred to as the said concern)] or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits;

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

Delhi

CA Inter

View Details