Related parties

Satyendra sahu (service) (216 Points)

19 February 2009  

Dear friends,

Any  one could guide me on, Sec. 40A(2b) of IT describes about related party and arm's lengh transaction.

Please read the example below and suggest  me whether  A & C can be related parties as per income tax.

A holds 20.8% of B

B hold 100% of C

A & B have the common directors in management

Directors of C are uncommon from directors of  A & B.

 

Please suggest