There is One Company A PVTLTD.
AUTHORISED S/C = 2 CRORES, PAID UP CAPITAL= 1 CRORE, RESERVES= 1.20 CRORE,
TURNOVER= MORE THAN 100 CRORES
The Shareholders in the company are:
MR W - DIRECTOR
MR X- DIRECTOR
MR Y,
MR Z
Now there is another company B PVT LTD
AUTHORISED S/C = 1 CRORES, PAID UP CAPITAL= 1.45 lacs , RESERVES= 70.00 lacs,
TURNOVER= around 25 CRORES
The Shareholders in the company are:
MR W
MR X- DIRECTOR
MR Y- DIRECTOR
MR Z- DIRECTOR.
WE WANT TO MAKE THE COMPANY B AS THE SUBSIDIARY OF COMPANY A.
QUES 1: WHAT IS THE METHODOLOGY OF MAKING CO. B AS SUBSIDIARY OF CO. A?
QUES 2: AT WHAT RATE SHOULD MR W PURCHASE SHARES OF B PVT LTD TO MAKE IT A SUBSIDIARY OF A PVT LTD WITHOUT INCURRING ANY TAX DEFAULT.
KINDLY ADVISE.
CAclubindia
