Hi
Status: A Ltd. has taken on rent a building named C and it has incorporated a pvt. ltd company named B pvt. Ltd with 49% shareholding. Now A ltd. wants to give on rent one floor of building C to B pvt. ltd.
Query: Is there any limit of charging the minimum rent from the B pt. Ltd. by A ltd. (i.e. any amount can be charged as rent from B pvt. ltd. like Rs. 1500/- per month)?
My Opinion: Nothing is prescribed for charging the minimum rent. Any amount can be charged as rent. Further One should see the rent agreement entered by A ltd. with the owner of building C to know whether A ltd. can further rent the building to other person.
Please answer this.
Thanks in advance.
Regards
Hinna Garg
CAclubindia
