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Liabilities of Susidiary Company

183 views 5 replies

Karishma Sharma

12 Points Joined October 2018

Can benefit of loss from subsidiary company be taken by holding company. ?

Replies (5)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

No, because subsidiary company is completely different entity.

Santhosh Ganesh

AGM - Secretarial

136 Points Joined July 2011

No as per IT Act it is not possible

however while preparing the Consolidated financials of the Wholly owned Subsidiary the loses can be absorbed by the holding company and in case of merger of the the WoS and holding Company the losses can be absorbed.

Jatin Bajaj

2930 Points Joined April 2016

No it is not practically possible.

only at the time of merger of two companies, it is possible that the loss of the subsidiary Company is carry forwarded by the subsidiary Company.

Subramanian

nil

33 Points Joined August 2010

Sir / Madam, I am working in a listed public limited company. It has two layers of unlisted public companies as subsidiaries. (One subsidiary is wholly owned by listed parent company and other is owned by the unlisted subsidiary company). The (Second layer) subsidiary company needs to be striked off from the records of the registrar by filling form stk-2. My doubt here is weather i need to get approval from holding companies shareholders for striking off this second layer subsidiary ??

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

There is no difference in procedure of closure of subsidiary or holding company, so yes consent of shareholders of holding company is also must since subsidiary is a part of holding although being subsidiary of subsidiary.