holding subsidiary as per income tax-possible?

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madhur gupta (Querist)
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19 December 2008 hello friendz....
in income tax we consider holding subsidiary relationship only when holding must hold 100% of the share capital(for various capital gain exemptions n others)
but how one co.can hold 100% of capital bcoz a co. need atleast 2 members
it means 100% can never b there......
then whats real meaning of such provisions?n how they work?
thankx

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 December 2008 A Private limited company can be a 100% subsidiary of another company (holding company). Two directors of the holding company must be subscribers to the MOA and AOA of the subsidiary company. Out of which one must be a subscriber for and on behalf of the holding company and the other should be a subscriber in his individual capacity as a nominee for which provisions of section 187 C of The Companies act,1956 should necessarily be complied with.