Reliance Industries Ltd inheritor and current Chairman has rejigged his holding by transferring the ownership shares from complex web of investment company holdings to LLP – Limited Liablity Partnerships ahead of the implementation of Direct Tax Code which gives relief if the partners distribute earnings as Dividend exempts from Paying them Dividend Distributin Tax.
Mukeh Ambani and Family Controlled LLPs are as follows,
Adisesh Enterprises LLP
Aavaran Textiles Private Limited
Abhayaprada Enterprises LLP
Ajitesh Enterprises LLP
Amur Trading Private Limited
Anumati Mercantile Private Limited
Badri Commercials LLP
Bahar Trading Private Limited
Bhumika Trading Private Limited
Bhuvanesh Enterprises LLP
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
Devarshi Commercials LLP
Deccan Finvest Private Limited
Ekansha Enterprise Private Limited
Eklavya Mercantile Private Limited
Harinarayan Enterprises LLP
Hercules Investments Private Limited
Jagdanand Investments and Trading Company Private Limited
Jagdishvar Investments and Trading Company Private Limited
Janardan Commercials LLP
Kedareshwar Investments and Trading Company Private Limited
Kamalakar Enterprises LLP
Karuna Commercials LLP
Narahari Enterprises LLP
Pavana Enterprises LLP
Pitambar Enterprises LLP
Rishikesh Enterprises LLP
Samarjit Enterprises LLP
Shripal Enterprises LLP
Srichakra Commercials LLP
Svar Enterprises LLP
Taran Enterprises LLP
Tattvam Enterprises LLP
Trilokesh Commercials LLP
Vasuprada Enterprises LLP
Vishatan Enterprises LLP
All the above LLPs report Earnings Income potentially trading in their own company stock and Dividend by virtue of their RIL stock Holding. These LLPs can distribute the Dividend to Partners without paying any Dividend Distribution Tax.
The main tax that Ambanis likely want to evade here is the MAT on Assets and reduce Wealth Tax Burden available under LLP Laws. At one end you middle class employees pay heavy tax and look here the Government has hand written rules to favor the Super Rich. Welcome to Indian Democracy!
Why should people part with their money? Do you think our Government is using our taxes for our welfare or benefit? No. Taxes go toward minority quota, mosque allowances, corruption, etc. Any infrastructure development by the Govt can be done via Public Private Partnerships through raising of funds through bonds which need to be paid back. Our Armed Forces need only 60,000 crore of expenditure with corruption included. All these social Gandhi family yojnas are corruption centres with only 10 paisa reaching the beneficiary. Middle class have to pay taxes in greater proportion to their income because they are not active voters whereas poor people are the free beneficiaries of the money of the middle class and are active voters who want their right on your money as well as zero responsibilities. The rich should invest their money to create businesses, not pay taxes to the Government which will be stolen anyway.