11 December 2012
we have three company which is pvt ltd and three director. all director have shareholding in every company. and with in every company we have internal cash & bank transaction.is all transaction comes under deemed divided and tax liability arise from this inter company transaction. plz advice sir....
11 December 2012
Deemed dividend - Section 2(22) (e) Loans & advances (other than in ordinary course of business) by closely held company deemed as dividend
Payment by a company not being a company in which public are substantially interested. Of any sum by way of loan or advances. To beneficial shareholder of not less than 10% of voting power. To any concern in which such a shareholder is a member or a partner and in which he has a substantial interest To any person on behalf of or for the individual benefit of such a shareholder.
Treated as dividend to the extent to which the company possesses accumulated profits Meaning of Accumulated profits All profits upto the date of distribution or payment.
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