Vinay Garg (Service Tax Expert) (780 Points)
29 September 2013
Hey Guys.
Whether a holding company of its subsidiary, where subsidiary company holds substantial shareholding in assessee company, cover under sec. 40A(2)(b) of income tax?
Waiting for fast reply...
(No guess please)
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 29 September 2013
Yes, definately this relation is be covered under Sec 40(a)(2)(b)
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 29 September 2013
Relative’ is defined to include ‘Substantial Interest
Substantial Interest’ is defined as a situation wherein a person is the beneficial owner of at least 20% or more Equity Voting Power (in case of Company) or is entitled to 20% or more of the profits. (in any other case)
Vinay Garg
(Service Tax Expert)
(780 Points)
Replied 30 September 2013
Yea, But only subsidiary company is covered by these words.. Pls clarify how holding company is covered.
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