30 May 2012
Please let me know the applicability of Section 297 in this particular case as mentioned below:
X,Y & Z are director in XYZ PVT Ltd as well as in ABC PVT ltd.
(1)If XYZ PVT Ltd purchase some goods from ABC PVT Ltd on credit on regular basis & make payment through cash & cheque.
(2)If XYZ PVT Ltd purchase some goods from ABC PVT Ltd on credit on regular basis & make payment through cash & cheque at the prevalling market rates.
(3)If XYZ PVT Ltd purchase some goods from ABC PVT Ltd on credit on regular basis & make payment through cash & cheque at the prevalling market prices. The amount of contract is of Rs. 3 crores approx.
1. Giving or taking loans. 2.Contract in respect of immovable property (as it is not 'good' ).{Letter No. 9/4190-CL-X dated 27.03.1990}. 3.Contract between two public Companies. 4.Contract of employment of director or managing or whole time director.[ Circuler No.8/11/75-CL-V dated 27.03.1975] 5.Contract for employment of relative of director. 6.Contract entered into by the company with the dealer on principle to principle basis. [Circuler No. FM 8/297/56-PR dated 02-08-1956] 7. Professional services of the nature given by firms of solicitors and advocates, etc.[circuler No. 8/11/75-CL-V dated 05.06.1975] 8.hiring of office premises on rent as the transaction is in immovable property. [Department Clarification dated 10-09-1990]
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