search this site - type your query and submit

Daily Email Newsletter (Sign-up Free)

Rule 51A of Income Tax Rules 1962: Nature of Business Relationship

Rule 51A : Nature of business relationship
(Part XI : Authorised Representatives)

"For the purposes of sub-clause (viii) of Explanation below sub-section (2) of section 288, the term "business relationship" shall be construed as any transaction entered into for a commercial purpose, other than,—

(i) commercial transactions which are in the nature of professional services permitted to be rendered by an auditor or audit firm under the Act and the Chartered Accountants Act, 1949 (38 of 1949) and the rules or the regulations made under those Acts;

(ii) commercial transactions which are in the ordinary course of business of the company at arm's length price - like sale of products or services to the auditor, as customer, in the ordinary course of business, by companies engaged in the business of telecommunications, airlines, hospitals, hotels and such other similar businesses."

Extra Notes for Readers:

- Rule 51A was introduced by the Income Tax (9th Amendment) Rules, 2015, w.e.f. 24th June 2015

Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.

No comments:

Post a Comment

In comment with "Name/Url" option, only Name is mandatory to be filled.