The Hindu Business Line : Directors at loggerheads

While winding up would be justified on grounds of stalemate, buying out of one by another would be a more viable alternative. The one buying out can bring in his own nominee to ensure at least two members.

Advance towards expenses

WE receive huge amounts from our foreign principals for whom we are handling agents. This is meant to take care of all expenses when their ships call at Indian ports.

Are these amounts to be considered a part of turnover or gross receipts for determining whether tax audit is mandatory under Section 44AB?

C. Ferrer, e-mail

Included in your turnover or gross receipts would be the commission or fees for your services. What is to be considered is the amount which would pass muster as revenue.

Advance towards expenses or reimbursement of expenses are by no means your turnover or gross receipts.

Liaison office

WHETHER having a liaison office in India requires a foreign company to submit its balance sheet, profit and loss account, and so on, to the Registrar of Companies (RoC) in India?

Anonymous, e-mail

A mere presence of a representative of a foreign company is not sufficient if his only authority is to solicit orders from customers but not to make contracts on behalf of the company (P. J. Johnson vs Astrofiel Armadorn 1989 3 Comp LJ). This case law sheds light on the issue raised by you. Therefore, everything depends upon the powers of the liaison officer in India.

(ASK! Send in your queries on accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

S. Murlidharan

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
An accountant in a school bus

Matchmaking talk with cola on table

Just do it

Directors at loggerheads

Baskets of 'X'

Predict the winner

Does a hand that helps suddenly become `foreign'?

Business-a-Verse

Come, let's play the game of Go

Cartoon Corner