CA Bhushan Bhagwat Bharambe (CA) (81 Points)
31 May 2010Hi All
can anyone please tell me
whether section 297 is applicable to cost sharing/Resource Sharing agreement in group of companies.
Because according to me reimbursment of cost shared would aslo constitute goods & services and fall under section 297 of companies act 1956
Please quote case law if available
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 31 May 2010
As per my personal opinion reimbursement of cost sharing does not automatically attracts the words goods, material, services u/s 297. Kindly analyse the item for which cost incurred jointly.
Go through the section 297 again and figure out the applicability in your case keeping in view the transaction.
Wait for other expert opinions.
Thanks
CAclubindia
