Writing off of loss of investment in subsidiery company
This query is : Resolved
05 February 2022
Hello,
Holding company(Indian) need to write off investment in shares done in subsidiery company(registered in USA) as subsidiery is shut down.
Question:
Will this loss be treated as Capital Loss or a business loss.
What will be the accounting treatment for the same in the book of holding company.
What disclosure is to be made in Notes to accounts of a holding company as Tax audit needs to be done for the same.
Holding company(Indian) need to write off investment in shares done in subsidiery company(registered in USA) as subsidiery is shut down.
Question:
Will this loss be treated as Capital Loss or a business loss.
What will be the accounting treatment for the same in the book of holding company.
What disclosure is to be made in Notes to accounts of a holding company as Tax audit needs to be done for the same.
05 February 2022
India’s Karnataka High Court gave its decision on 9 September 2020 that the write-off of an investment originally made in a wholly owned subsidiary for the purpose of expanding the taxpayer’s business activities is a business loss.
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