Which of the following relationships between two enterprises would result in them being deemed associated enterprises ?

CS Executive · Tax Laws and Practice · PYQS · December 2019
Which of the following relationships between two enterprises would result in them being deemed associated enterprises ?
(A) One enterprise giving loan equal to 10% of the total assets of the other enterprise.
(B) 25% of the directors of both the enterprises being same persons.
(C) One enterprise guaranteeing not less than 10% of the total borrowings of other enterprise.
(D) One enterprise supplying more than 26% of the raw materials consumed by another enterprise.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax

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