Dear Professional collegues
I want to your valuable advices in the matter.
There is a huge housing complex of CIDCO with many flats of NRI, which has been registered as a Public Limited company. Members of the company have been appointed as directors of the company. The said company is complying with all the provisions of the companies Act, 1956, like filings forms, annual filings , tax filings etc.,
Society is collecting huge amounts by way of maintenance etc., and large amount of fund is lying the corpus of the society which are invested in securities and society if generating lot of profits on which society had to pay huge amount of tax.
There are no liabilities in the balance sheet only assets.
Now the question is what tax planning can be made in this regard or whether society which has been registered as a public ltd company can be converted into coopeative Housing society Ltd., so that tax liabliites could be avoided which society is paying in the form of a Ltd company.The main intention here is to avoid tax liablity.
I think this company cannot be converted into a section 25 company as the objects with which the company is formed are quite different and it is for the benefit of members only.
Should you need any further inputs in the matter I will be able for furnish to you.
I shall be grateful if you could kindly let me have your advices in the matters especially regarding conversion of the said company into cooperative society, if so, procedure, checklist etc.,is needed.
Early advices in the matter is solicited OR you can also check from your other friends and let me know.
thanks in advance
S.S.NARAYANA
COMPANY SECRETARY
CAclubindia
