Section 314

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 Dear All,

A private company have US citizen as Director, who is also owner of LLC based in US. The company have service agreement with LLC and paid 550k USD for services availed as per contract. Does this transaction attract section 314.??

Kindly clarify.

Saroja

Saroja (Expert)
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19 August 2011 NOT APPLICABLE UNDER SEC 314, WILL NOT ARISE

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2011 Thanks Saroja! Can u please tell me the exact clause as auditors are raising questions.

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Saroja

Saroja (Expert)
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19 August 2011 As per sec 314, this sec attract only,
Appointment of

1.Partner or
2.relative of Director or
3.manager or

4.firm in which such director or manager or relative either is a partner or

5.Pvt.company in which such director or manager or relative of either is a director or member.

so, now wats ur plm, tell me, i'll explain again.

Saroja

Saroja (Expert)
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20 August 2011 am i wrong na, pls clarify this