Sec 297

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Hello Suppose there is G ltd it wants to assess the Cost involved in particular project and appoints a CA and that CA is the relative of a director in g ltd would sec 297 be hit in such a case? Can anyone explain
Replies (7)

If the CA is being appointed in the employment of the company then the provision of section 314 relating to office or place of profit would get attracted.

However if there is a contract for provison of services then the provisions of section 297 would get attracted.

Thank you sir, So is it like u/s 297 only services of professionals like solicitors and advocates are exempt all other professional services hit 297 ?

Dear george

Yes, in situation mentioned by you, section 297 would get attracted and you would require Board authorisation to enter into that conract with CA for availing his services. Also, if you have already entered into contract with CA without obtaining Board consent, you should obtain Board consent in next 3 months of entering into such contract. However, if the contract of service is for les than Rs.5000/- (which I am assuming would not be the case) then you need not to obtain Board consent. Should need any further clarification, pl. feel free to contact.

Regards

Deepika

No it's not only services relating to professionals, it is also related to services other than profesionals.  For instance if the Board enters into a contract with a relative of director or any specified person to provide teh services relatign to maintenance of computer systems, or say A/C maintenance then in such case also section 297 gets attracted

Thank you Deepika Maam, now in my example if the company had appointed an advocate instead of a CA then would section 297 be applicable
Thank you Deepika Maam, now in my example if the company had appointed an advocate who is a relative instead of a CA then would section 297 be applicable
Thank you Giridhar sir


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