banner_ad

Losses of subsidiary company.

This query is : Resolved 
Profile Image

Profile Image

(Querist)
18 June 2011 Dear Experts,

We have formed a 100% subsidiary co in Dubai to acquire a company in Italy.

We have done due diligence & has paid the due diligence exp from our a/c's i.e. from holding company's a/c. holding company has debited these exp.

Is this treatment is right?

Subsdiary co. will not be doing any business activity there, if subsidiary company debit this exp, then there will be loss on its financilal statment. In this case can holding company debit the losses in its book incurred by its subsidiary company during the year?

Waiting for your reply...

Thanks in advance..
Regards,
Sushil.
Profile Image

ABHISEK TOSNIWAL

Profile Image

ABHISEK TOSNIWAL (Expert)
20 June 2011 Dear Sushil,

Expenses are required to be shown by that company which is incurring it and whose exp. they are actually. In your case since the exp. are of subsidiary co. so you need to show the exp. in its books.
Regards,
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
13 July 2023 "Sorry, I am not a featured member."

For featured members contact....

https://www.caclubindia.com/catalogue/featured.asp
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details