Merger of two companies

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 SALES TAX PAID FOR THE SALES MADE BETWEEN MERGED COMPANIES BEFORE THE ORDER OF MERGER HAS COME TO NOTICE
FOR EXAMPLE: ORDER OF MERGER IS EFFECTIVE FROM 01.04.2013 BUT THE ORDER HAS CAME TO OUR NOTICE ON 28.09.2014 CAN I GET THE TAX REFUND ON TAXES PAID FOR SALES MADE BETWEEN THE INDIVIDUAL MERGED COMPANIES

CA Hardik Bunha

CA Hardik Bunha (Expert)
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01 December 2014 NO, SALES TAX WILL NOT BE REQUIRED TO PAY IN THE CASE OF MERGER OF COMPANIES.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 IF ALREADY PAID CAN I GET THE REFUND

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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01 December 2014 VAT exemption arises only for sales done as a part of merger,not before that event.While effecting a merger of two companies the available stock is taken as sold,but with no tax liability.Here the new company has to pay tax on its sales without any input of this old stock.For the sales done before such merger normal VAT liability will be there....mjk

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