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Whether a private Company having paid-up share capital of rupees 45 lakhs and turnover of Rs. 20 crores as ......

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROHIT SINGH asked about 3 years ago

Whether a private Company having paid-up share capital of rupees 45 lakhs and turnover of Rs. 20 crores as per last audited balance sheet will be treated as small company?

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered about 3 years ago

Dear Friend, as far as your query is concerned that Whether a private Company having paid-up share capital of rupees 45 lakhs and turnover of Rs. 20 crores as per last audited balance sheet will be treated as small company? Let me informed that It is not a small company. Section 2(85) defines a small company as a company other than a public company— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or (ii) turnover of which as per its last profit and loss account does not exceed 2 crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees: Provided that nothing in this clause shall apply to— (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act. This means that a private company shall not be covered in the definition of small company if either its paid up share capital exceeds Rs. 50 lakhs or its turnover exceeds Rs. 2 crores. Since the turnover of this company is more than Rs 2 crores i.e. Rs. 20 Crores, it will not be a small company. Hope answer was helpful to you Regards, Arjun Pratap Singh

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anamika gorai commented 2 months ago

In the definition of section 2(85) what the higher amount prescribed exactly means?

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