TAX COMPLIANCE OF MERGER BY PRODCER COMPANY
This query is : Resolved
CA S Sundararajan
(Querist)
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
CA S Sundararajan
(Querist)
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
