IF ABC PRIVATE LIMITED IS MERGED WITH AB LTD.(LISTED ON NSE & BSE), WHAT TAX BENEFITS WILL AB LTD. WILL GET IN CASE ABC PRIVATE LIMITED IS HAVING LOSS OF RS. 5 CRORES IN F.Y. 2012-2013
(SOMETHING IS BETTER THAN NOTHING)
Replied 02 April 2013
In case of Amalgamation, accumulated Loss and unabsorbed depreciation of Amalgamating (transferor) company can be transferred to Amalgamated (transferee) company, if
Amalgamated company holds continuously ¾th value of assets acquired from Amalgamating Company for at least 5 years from date of Amalgamation.
Amalgamated company continues to carry on the business of the amalgamating company for at least 5 years.
The Amalgamated company shall achieve the level of production of at least 50% of the installed capacity of the said undertaking before the end of the four years from the date of amalgamation and continue to maintain the said minimum level of production till the end of 5 years from the date of amalgamation. However on application Central Government may relax this condition. The amalgamated company shall also furnish to assessing officer a certificate in Form No.63 providing prescribed production particulars, duly verified by chartered accountant. (Rule 9C).
Amalgamating company has been engaged in the business, in which the accumulated loss occurred or depreciation remains unabsorbed, for 3 or more years.
Amalgamating company has held continuously as on the date of amalgamation at least ¾th of the book value of fixed assets held by it 2 years prior to the date of amalgamation.
of course it can be claimed in first year,but if anyone condition is not satisfied later it will be taxable in the year in which you abide
correct me if i am wrong,