Priyanka (Assistant Company Secretary) (905 Points)
03 June 2011HELLO,
I HAVE A URGENT QUERY. MY COMPANY HAS GIVEN DONATION 4-5 YEARS BACK SOON AFTER ITS INCORPORATION FOR TAX PURPOSE . IT WAS FACE LOSS THEN. NOW IT WAS NOTICED THAT SECTION 293(1)(e) IS ATTRACTED. WHAT IS THE SOLUTION FOR IT BECAUSE THE CALCULATIONS ARE IN LOSS?
YOU EACH SUGGESTION IS IMPORTANT AND APPRECIATING FOR ME.
REGARDS,
PRIYANKA
Priyanka
(Assistant Company Secretary)
(905 Points)
Replied 04 June 2011
NO ONE HAVE THE ANSWER.............I M WAITING
CA Ravish Trivedi
(The Possibilities are Infinite...)
(772 Points)
Replied 07 June 2011
Aparna Raja K.C
(Student)
(520 Points)
Replied 11 June 2011
:) Sec 293 of Companies act prohibits the board of directors of a PUBLIC Co.from giving donation in excess of Rs.50000/- or 5% of avg. n/p of the preceeding 3 f.ys - which ever higher.
Hence,
its a sure case of ulta virus - when co. does any act beyond its powers.
in the given case, Acts ultra virus the directors- they can be ratified by shareholders in a general meeting. :)
Priyanka
(Assistant Company Secretary)
(905 Points)
Replied 13 June 2011
THAT DONATION WAS GIVEN U/S 80G IN THE YEAR 2006. CAN IT BE RATIFIED NOW? IF YES THEN HOW? PLZ SUGGEST.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 13 June 2011
no it cannot be ratified and that donation is not allowed as per section 293 because 3 years are not elaped from commencement of business, if donation is given then it is violated provisions of section 293.
CAclubindia
