TAX COMPLIANCE OF MERGER BY PRODCER COMPANY
This query is : Resolved
15 March 2008
Dear Sir,
One of my Client , wholly ownred State Government company procedding to merger with other two wholly ownred State Government company .In such case , what are the tax liability for the transferor company ?
One of my Client , wholly ownred State Government company procedding to merger with other two wholly ownred State Government company .In such case , what are the tax liability for the transferor company ?
15 March 2008
whatever the assets are transferred are not liable to capital gain tax bu virtue of sec.47
15 March 2008
NOT A TRANSFER AS PER SECTION 47
15 March 2008
FROM 1999-2000,MERGERS ARE TAKEN OUT OF THE PURVIEW OF TRANSFER UNDER SEC 47.
SO THERE ARE NO CAPITAL GAINS OR OTHER LIABILITIES.
BUT ON THE VALUE OF SHARES ALLOTTED BY THE RESULTING COMPANY TO TRANSFEROR COMPANY CONSEQUENT TO THE MERGER , STAMP DUTY OF 2.5% IS PAYABLE WEF THE YEAR 2005 AUGUST. BUT WHETHER A GOVT. COMPANY GETS EXEMPTION OF STAMP DUTY BEING A STATE DUTY ? ONE CAN APPLY TO GOVT. AND TRY FOR EXEMPTION FROM STAMP DUTY.
R.V.RAO
SO THERE ARE NO CAPITAL GAINS OR OTHER LIABILITIES.
BUT ON THE VALUE OF SHARES ALLOTTED BY THE RESULTING COMPANY TO TRANSFEROR COMPANY CONSEQUENT TO THE MERGER , STAMP DUTY OF 2.5% IS PAYABLE WEF THE YEAR 2005 AUGUST. BUT WHETHER A GOVT. COMPANY GETS EXEMPTION OF STAMP DUTY BEING A STATE DUTY ? ONE CAN APPLY TO GOVT. AND TRY FOR EXEMPTION FROM STAMP DUTY.
R.V.RAO
17 March 2008
Thank you very much sir for clarification given by you.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Clarification Required on Filing Form 141 for Joint Buyers
- HOUSING LOAN ISSUE
- RELATED TO TRIBUNAL APPEAL
- Taxability of Partnership firm for FY 2025-26
- GST Rate for Catering Services
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- RATE AND HSN CODE
- TDS AND ITR ISSUE
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
