Business loss carry forward in case of takeover
This query is : Resolved
Sandeep Modak
(Querist)
16 January 2011
Sir,
As per the subject, in case of takeover if the company who's business is takenover by another company has business losses can such losses be carried forward as business loss in the books of company who has taken over the business if so under which section.
As per the subject, in case of takeover if the company who's business is takenover by another company has business losses can such losses be carried forward as business loss in the books of company who has taken over the business if so under which section.
CA PARAS BAFNA
(Expert)
16 January 2011
Yes. You may refer Section 72A.
This section contains Provisions to c/f and set off of losses in case of amalgamation, demerger etc.
This section contains Provisions to c/f and set off of losses in case of amalgamation, demerger etc.
Sandeep Modak
(Querist)
16 January 2011
Sir,
Here only shares are to be transfered where in new shareholders will takeover the business of the old company so would not be a case of amalgamation
Here only shares are to be transfered where in new shareholders will takeover the business of the old company so would not be a case of amalgamation
CA Nitish Jain
(Expert)
16 January 2011
in such a case, there will only be a change in the shareholding of the company and management of the company.
it will not effect the provisions relating to set off and c/f.
the provision will apply as if no change has been made.
it will not effect the provisions relating to set off and c/f.
the provision will apply as if no change has been made.
CA PARAS BAFNA
(Expert)
16 January 2011
Now , You may Refer Section 79.
According to the Section if 51% of the shareholders are not the same, carry forward of losses will not be allowed.
According to the Section if 51% of the shareholders are not the same, carry forward of losses will not be allowed.
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