Section 297 - Cumulative quantity discount.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2011 A public company having capital more than 1 cr. selling goods to its sister concern in which directors are interested.
The sale is on prevailing market price and for cash

QUESTION:l

WHAT IF COMPANY PROVIDE CUMULATIVE QUANTITY DISCOUNT? iMPACT OF SECTIONS OF COMPANY LAW.

Rasesh

Rasesh (Expert)
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01 April 2011 If the transaction is between two public limited companies, then Sec 297 is not attracted.

If the transaction is with a private limited company, then the cumulative quantity discount may attract Sec 297 if it is not provided to other parties purchasing similar quantities from the company.