Fema queries for wind-up of indian company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2012 Hi, request you to please guide me on the below matter urgently.
Summary: Mauritius company own 100% in india renewable energy company & renewable company own 30% stake in Public renewable energy comany ( not listed).

my question is :
(A) can we wind-up Mauritius own company in india , if yes then what is the treatment of investment, it is any tax applicable ?
(B) instead of wind-up can we merge the indian company with parent company.

please reply me Urgently on my email manojranchi@gmail.com

Vishal D Shah

Vishal D Shah (Expert)
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31 May 2012 Dear Manoj,
First part of query is on taxability of transaction. On wind up anything paid to owner shall be taxable as capital gains.
It also requires treatment of subidiary shares and issue of its valuation if the same are passed on to the share holders of Mauritius based holding company. There are multiple issues which need to be checked. Advised approach proper professional help.

Secondly, merger is possible option too.

Regards,
cavishalshah@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2012 Thanks Mr. Shah,

But i my knowledge the new Companies Bill 2011, it is proposed that with prior approval of the RBI a merger can happen even when the transferee is a foreign company. and a foreign company and hence the envisaged merger will be permitted only on the Companies Bill 2011 being enacted.

Please guide how to merge with mautitius base company.

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