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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
