Change in Share holding pattern and effect on carry forward
This query is : Resolved
04 March 2009
If the share holding pattern in a privte limited compnay is changed, what is impliction of the carry forward of losses.
Ex: In X , a private limited compnay :A(an individual and director)holding 10% shares, B(an individual and director) holding 10% shares, C(a private limited compnay, 3 directors are representing from C Private limited) holding 80% shares, wants to change the share holding pattern and wants to have all the directors from C Private limited. i.e. both A and B wants to come out of the director ship and all the directors from C Ltd want to become the directors of X private limited compnay and the share holding of A and B is to be reduced to 2% each , X has a carry forwarded loss of over 4 crores for thePrevious year 2007-08. Change in the shareholding pattern how it will effect the carry forwarded losses. As a result of this : Is it possible that X private limited will lose the carry forwarded loss and can not set off against the profits in the current or future years. Please advise
Ex: In X , a private limited compnay :A(an individual and director)holding 10% shares, B(an individual and director) holding 10% shares, C(a private limited compnay, 3 directors are representing from C Private limited) holding 80% shares, wants to change the share holding pattern and wants to have all the directors from C Private limited. i.e. both A and B wants to come out of the director ship and all the directors from C Ltd want to become the directors of X private limited compnay and the share holding of A and B is to be reduced to 2% each , X has a carry forwarded loss of over 4 crores for thePrevious year 2007-08. Change in the shareholding pattern how it will effect the carry forwarded losses. As a result of this : Is it possible that X private limited will lose the carry forwarded loss and can not set off against the profits in the current or future years. Please advise
04 March 2009
Here Company X is assessee, change in shareholding will not effect the carry forwarded losses of a Company.
Company can carry forwarded losses and set off with CY profits.
Company can carry forwarded losses and set off with CY profits.
11 March 2009
Thnak you very much Mr. Lokesh Kasat
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