Hi,
A loss making company having accumulated losses paid a sum of Rs. 50 Lakhs to his wholly owned holding company. Can anybody tell what would be the accounting treatment for the same and its tax implications.
Regards
Rashi Goyal
CA. Rashi Goyal (Chartered Accountant) (512 Points)
04 April 2011Hi,
A loss making company having accumulated losses paid a sum of Rs. 50 Lakhs to his wholly owned holding company. Can anybody tell what would be the accounting treatment for the same and its tax implications.
Regards
Rashi Goyal
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 05 April 2011
Rashi sir,
what type of payment is it. is it repayment of loan or transfer of funds.
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 28 June 2011
It is niether loan nor advance. It is a gift.
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