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Subsidiary cmpany

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praveen

inspector

30 Points Posted on 12 April 2013

I am working with Municipal Corp. Of Greater Mumbai. Also A CS student.

I have query regarding Subsidiary company. We provide octroi exemption to companies as per relevent section of MCGM. However in a case there is Octroi tax amount is pending on parent company. We have a check system where we stop the facility of exemption to co if any previous due is there. However in many cases tax is pending on one sompany and other companies of same group or subsidiary is asking for exemption citing they r different co under company law.

But if same promoter ./ group is defaulter in a case can we legally stop this facility for subsidiary or group co whwre promoters have stake or where all promoters are same?

What r other ways we can make them to pay?

Replies (1)

Pavan Zavar

63 Points Posted on 14 April 2013

Praveen,

You should not restrain other companies from taking benefit of octroi exemption as rightly contented by these companies. A company is a seperate legal person in the eyes of law. It has its own identity apart from its director and shareholders. This benefit can be availed even if it happens to be all shareholder, Directors of all such group companies are same.

In order to recover pending amount of Octroi, you can take legel procedure as allowed relevant sections of MCGM, laws allowing levy and collection of Octroi..etc.