classification of Shares held of group companies
This query is : Resolved
26 May 2010
a Pvt Ltd. co. which is regd. as an NBFC is classifying its investment in Group companies which are all pvt ltd companies as Stock in trade, is this treatment correct?
this is more so when we know that shares of a Pvt co are not tradeable/transferable
this is more so when we know that shares of a Pvt co are not tradeable/transferable
26 May 2010
Yes, the treatment is correct and followed as a matter of practice by most NBFC and also allowed by RBI.
26 May 2010
IN MY OPINION THIS TREATMENT IS NOT CORRECT AND IT SHOULD BE SHOWN AS INVESTMENT.
SHOWING INVESTMENT IS MUCH BETTER. IF YOU SHOW IT AS STOCK-IN-TRADE THEN ANY INCOME ARISING IN FUTURE WILL BE TREATED AS BUSINESS INCOME.
SHOWING INVESTMENT IS MUCH BETTER. IF YOU SHOW IT AS STOCK-IN-TRADE THEN ANY INCOME ARISING IN FUTURE WILL BE TREATED AS BUSINESS INCOME.
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.
- Tds on building rent monthly
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Disallowance of Section 43B(h) to sez units
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
