TAXATION OF COMPANIES
DEFINITION OF COMPANY (SECTION 2(17))
The expression “company” is defined to mean the following:
a. Any Indian Com
b. Any body corporate incorporated under the laws of foreign country.
c. Any institution, association or a body which is assessed or was assessable assessed as a company for any assessment year commencing on or before April 1, 1970;
d. Any institution, association or a body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the CBDT to be a company.
TYPE OF COMPANY
1. Indian Company
2. Domestic Company
3. Foreign Company
4. Industrial Company
5. Company in which public are substantially interest
6. Closely-held company
An Indian company means a company formed and registered under the Companies Act, 1956.
It means an Indian company or any other company which, in respect of its income liable to tax under the Act, has made prescribed arrangements for the declaration and payment of dividends within India in accordance with Section 194.
It means a company which is not a domestic company.
It means a company which is mainly engaged in the business of generation or distribution or electricity or any other form of Power or in the construction of ships or in the manufacture or Processing or goods or in mining.
COMPANY IN WHICH PUBLIC ARC SUBSENTIALLY INTERESTED:
It is regarded as company in following cases:
1. Owned By Govt. /RBI in which not less than 40% shares (in terms of value) are held by the Government or RBI or a corporation owned by the RBI
2. Companies under section 25, for promotion of commerce, art. Science, religion, charity and prohibiting the payment of any dividends to its members.
3. A company without share capital and declared by CBDT to be a company in which public are substantially interested.
4. Nidhi Or Mutual Benefit Society A company which carries on, as its principal mess, the business of acceptance of deposits lion; its members and which is declared by the Central Government under section 620A of the companies Act to be a Nidhi or Mutual Benefit Society.
5. Company owned by a Co-operative society A company in which shares carrying not less than 50% of the voting power having been allotted unconditionally and throughout the relevant previous year held by one or more co-operative societies.
6. Listed companies: A company which is not a Private company and its equity shares are, as on the last day of the previous year. listed in a recognized stock exchange in India
7. Public limited company owned by Government and /or a widely-held company: A company which is not a private company and its shares carrying 50% of voting power (40% in case of industrial company)have been allotted unconditionally to , or acquired unconditionally by and were throughout the relevant previous year beneficially held by :
1. The Government; or
2. A statutory corporation; or
3. A company in which the public are substantially interested or any wholly owned subsidiary company.
CARRY FORWARD AND SET OFF OF LOSSES IN THE CASES OF CERTAIN COMPANIES (SECTION 79)
In case of companies in which the public are not substantially interested, loss will not be carried forward and set off unless the shares of the company carrying not less than 51% of the e beneficially held by the same person(s) both on the last day of the previous year in which loss occurred and on the last day of the previous year in which brought forward loss is sought to be set off.
IN THE FOLLOWING CASES THE ABOVEMENTIONED RULE SHALL NOT APPLY:
1. Transfer by Gift to a Relative or upon the death of a shareholder.
2. Carry forward or depreciation, capital Expenditure on Scientific Research and capital expenditure on Family Planning are not effected.
3. Amalgamation /Demerger of Foreign Holding company: The rule of section 79 shall not apply to any change in the shareholding of an Indian company which is subsidiary of a foreign company arising as a result of amalgamation or demerger of the foreign company subject to the condition that 51% of the shareholders of the amalgamating or demerged foreign company continue to remain the shareholders of the amalgamated or the resulting foreign company