Sister concern losses

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Hi Friends,

Can one company losses be adjusted against profit of another company ? If both the companies are sister concern.

Kindly clarify.

Regards,

Swathi

Replies (3)

no ways yaar... sister com. loss cant b adjusted with each other..........

Even i was in the same opinion, but the director of sister concern company is asking again and agian to adjust their company profit with loss of another comapny to evade tax. 

Sister companies are separate cmpanies having separate legal identity, and there is no rule given where set off of losses allowed... so u cant do that dear

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