Related Party Transaction

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2011 Company X is a foreign company having CONTROL over Company Y and Company Z. Company Y and Company Z are Indian companies. So whether any transaction between company Y and Company Z is to be treated as related party transaction u/s 40A(2)(b)? Should this be reported in Form 3CD?
Please let me know with this and if possible with a proper proof (Urgent)

Ashok Asthana

Ashok Asthana (Expert)
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26 February 2011 I think Yes,because Company X, Y, Z are directly related as Company X has control over Company Y & Z

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2011 Even I think the same, by the way don't you think this is covered in section 40A(2)(b)(v) which says
"a company, firm, association of persons or Hindu undivided family of which a director, partner or member, as the case may be, has a substantial interest in the business or profession of the assessee; or any director, partner or member of such company, firm, association or family or any relative of such director, partner or member"

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