Can AOP be a member of a company?

Can AOP be a member of a company?

A company can be a member of an AOP. 1. The share of income of a company from an AOP, will have to be included in its total income as contemplated under section 2(45) of the Act.

When a non domestic company is a member in an AOP and its share of profit is indeterminate the tax on total income of the AOP is charged at the?

Section 167B(1) provides that where the individual shares of the members of an AOP or body of individuals (BOI) in whole or any part of the income of such AOP or BOI are indeterminate or unknown, tax shall be charged on the total income of the AOP or BOI at the maximum marginal rate.

Is association of persons legal entity?

An association of persons (AOP) or a body of individuals (BOI), whether incorporated or not, is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961. Hence, AOP or BOI is treated as a separate entity for the purpose of assessment under the Income-tax Act.

Can AOP become a shareholder?

A partnership firm cannot become a shareholder of a company, since it is not a legal person having a separate entity from that of partners. Partners can be registered as joint holders in which case each of them becomes a member.

Can AOP sue in its own name?

By Section 6, the Society can either sue or be sued in the name of its president. It is capable of suing and being sued as such. A tax imposed on a Society, though it has been styled as an ‘Association of persons’ is still a tax on the Society and not on its members.

Is Cooperative Society AOP or BOI?

AOP or BOI does not include— a company; a co-operative society; a society registered under the Societies Registration Act, 1860 or under any other law corresponding to that Act in force in any part of India.

What is the difference between AOP and BOI?

Association of Persons (AOP) means a group of persons who come together for achieving a common objective and have the same mindsets. Members of the AOP can be natural or artificial persons. Body of Individuals (BOI) means a group of individuals (natural persons) who join together for earning income.

Can a company own shares in another company?

Can a company hold shares in another company? A limited company shareholder can be an individual person or some kind of business entity, like another company, an LLP, an organisation, etc. Non-human shareholders are referred to as ‘corporate shareholders’.

Who Cannot become a member of a company?

Lunatic and Insolvent: A lunatic cannot become a member. An insolvent, however, can become a member and is entitled to vote at the meetings of the company. But his shares vest in the Official Receiver when he is adjudged insolvent. 3.

Is share of income from AOP / Boi governed by SEC 67A?

Share of income from such AOP / BOI shall not be governed by sec. 67A. Since while determining the category of AOP/BOI covered under sec 67A no person (u/s 2 (31)) is restricted to be a member of AOP / BOI, so and Company, Firm, HUF can be a member of AOP / BOI. Taxation of AOP / BOI. (Sec 167B)

Does it matter if I incorporate as a boi or AOP?

For a fact, whether it is a BOI or AOP, the purpose for which you are incorporating it does matter by reason that registration procedures do vary as the applicable law (Act under which you shall register) varies as well.

Can a company be a member of an AOP?

1. Whether a company could be a member of an AOP. 2. Impact of the relevant provisions of the Act, on the matter under consideration and examination of such provisions. 3. Tax-treatment of the share of a company in an AOP, in the computation of its total income.

Is AOP/Boi’s income taxable at MMR?

According to Section 86, if AOP/BOI’s income is taxable at MMR then members share in the income of AOP/BOI is exempt in their hands. So in (i) case A’s Share =420000 and B’s Share =280000 will not be added in their total income. ii.