diversion of funds
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 May 2011
a company has given loans to a person in crores and the person has donated the money to a trust,.The company and the trust are related parties.Is there any tax angle involves in it ,,,or is this not diversion of funds
14 May 2011
BOTH ARE SEPARATE ENTITIES
IT IS NOT DIVERSION OF FUNDS
THE CO WOLUD BE A CREDITOR SO FAR AS THE OTHER PERSON IS CONCERNED OR OTHER PERSON WLD BE A DEBTOR
BUT THE PROBLEM MAY ARISE WHEN THE CO WLD WRITE OFF THE LOAN MONEY
BUT IN THAT CASE ALSO THE PERSON CONCERNED WILL ESCAPE SECTION 41(1)
CO WILL NOT BE ABLE TO GET DEDUCTION FOR BAD DEBT
CA MANOJ GUPTA
JODHPUR
09828510543
IT IS NOT DIVERSION OF FUNDS
THE CO WOLUD BE A CREDITOR SO FAR AS THE OTHER PERSON IS CONCERNED OR OTHER PERSON WLD BE A DEBTOR
BUT THE PROBLEM MAY ARISE WHEN THE CO WLD WRITE OFF THE LOAN MONEY
BUT IN THAT CASE ALSO THE PERSON CONCERNED WILL ESCAPE SECTION 41(1)
CO WILL NOT BE ABLE TO GET DEDUCTION FOR BAD DEBT
CA MANOJ GUPTA
JODHPUR
09828510543
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- GST Regis.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- RCM INVOICING FROM NOV-2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Tds on building rent monthly
- Disallowance of Section 43B(h) to sez units
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
