Tax Implication

Hi Paresh Rathod,

Assuming Garage is a part of that land which Company A has bought.

              In this case Company A will get Profit / Loss in its business as It is Real Estate Business & Land is is treated as Stock. If Profit on sale then after all deduction the Balance Profit will be Taxed @ rate of 30% & if it is loss it can be carry forward for next year.

             Then In case of B ( Individual) will het Short term Capital Loss it can be Set off with any other Capital gain & balance loss can be carried forword for next year.

             For Company C if Company has bought for resale then it will be shown as stock & if it is bought for some other purpose then it has to shown as Fixed Assets.

Thanks

R Shriram

I agree with you Shriram but both company is intercorporate company & consideration is less than its sold to individual.