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Commerce · Q731

Income Tax and Corporate Tax

Graduate and Post Graduate · Commerce · question 731

Q731

Two enterprises shall be considered as associated enterprises if at any time during the previous year, which of the following condition is satisfied?

A.
Holding 25% voting power in another enterprise
B.
Advancing of loan which is at least 51% of the book value of the assets of the borrower enterprise
Answer
C.
Providing guarantee for at least 5% of the total borrowings of enterprise
D.
Tapping at least 50% of raw material from the enterprise

Answer: Option B

Solution

Answer: Option B
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