In case of Demerger, For how many years can the losses of "resulting Co" (earlier suffered before demerger) be carry forwarded ..? (Like in case of Amalgamation,even though the Selling company had been Carrying forward its business losses for say 3yrs, Post amalgamtion..it can c/f for Further new 8 yrs ..Likewise telme the position for Demerger..)
UNLIKE AMALGMATION IN DEMERGER THE RESULTING CO. CAN CARRY FORWARD LOSSES ONLY FOR THE UNEXPIRED PERIOD OUT OF THE TOTAL PERMISSIBLE PERIOD OF 8 YRS.
HOWEVER IT NEEDS MENTION THAT UNABSORBED DEPRECIATION CAN BE CARRIED FORWARD FOR AN INDEFINITE PERIOD.
In case of amalgamation,conversion of propreitership or partnership firm to a company, fresh 8 years are allowed to carry forward the losses ....but in case of demerger losses of the demerged company can be carried forward only for the UNEXPIRED PERIOD nd unabsorbed depreciation for a lifetime...
T R SOOD & CO
New Delhi
CA Inter
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Vardhaman Group of India
Pimpri Chinchwad
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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SMJ global advisors pvt ltd
New Delhi
B.Com
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CAclubindia
