- Two private Company (A & B)with a common director
- Company B (not a director)receiving commission on sale of goods, from the company A for the annual sales made to the other parties Outsider).
-Is the Section 297 shall be applicable on the Company A for the payment of Commission to the Company B in which a director are also a promoter Diretor?
-Is there any difference for Supply and receipt of services ?
30 May 2011
Section 297 is very much applicable in your case.
As far as supply of services is concerned, the only difference is that it does not qualify for exemption under sub-section (2) (a) of Section 297 even for cash transactions at prevailing market while purchase or sale of goods and materials for cash at prevailing marketing prices are given exemption.
CAclubindia
