Related parties

Dear Sujatha,

But first tell, for what purpose you are asking this? are you asking them under Income Tax, Companies Act, etc....

Kindly share some more details on this query...

If A ltd has a substantial interest in B ltd, than B ltd is a related party to A ltd. But it is not applicable vice versa i.e. A ltd is not related to B ltd.

Hi Mr Arora,

I am asking this with respect to section 40A(2)(b) of the income tax act.

Dear Sujatha,

if you are asking in regards to expenditure done and its disallowance on account of Sec. 40A(2) being over-the-market-price... then, A Ltd. is related party to B Ltd. in its context and B Ltd. is related party to A Ltd. in its context.

Kindly read this:-
40A(2)(b)(iv)
a company, firm, association of persons or Hindu undivided family having a substantial interest in the business or profession of the assessee or any director, partner or member of such company, firm, association or family, or any relative of such director, partner or member [or any other company carrying on business or profession in which the first mentioned company has substantial interest];

[it is w.e.f. 01-04-2013]

Thanks and regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405