18 December 2010
One of our company client have the share capital Rs.1,00,000/- and Reserves Rs.69,00,000/- in the Liability side and On the Asset side we have Bank Balance amounted to Rs.70,00,000/- and also company is not disqualified from EES as per conditions mentioned in the circular of EES in this situation I have some queries 1 Can company go for Easy Exit Scheme? 2 If YES than when company pay the amount showing in Bank amounted to Rs.70,00,000/- to the shareholders than should it be considered as dividend to the shareholders. 3 In the above process what is the Tax and Company Law implication?
18 December 2010
1.Yes 2.Yes Upto Extent of Accumulated Profit i.e 69Lacs 3. Under 2(22)(a)Then its Liable to CDT to Be Paid by Compnany & Same amt Exempt in Hands of Shareholders U/s 10(34)
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