Subcontact to a Company (Same Pramoters case)

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2011 Dear All
Plz claify the following issue
i.e.A company's paid up capital is > 1 Crore, with Directors/pramoters of Mr.X & Y

and B company is a company, pramoters are same MR. X&Y

Can "A" company give subcontract to "B" company directly or any CENTRAL GOVT or ROC permission has to take (Land Development,Construction etc.....)

Kindly explain me with sections/Case Laws/Circulars

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

03 July 2011 Yes but the provisions of companies act Section 297 and 301 formalities to be completed. Other Section are 290, 299,300. Kindly go through the provisions and undergo the formalities for giving contract to the company in which the directors are interested.

As per income Tax Act Section 40A(2) will attract.

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2011 Is there any exemptions for this

Upgrade to CAclubindia Pro. Subscribe Now!