10 August 2012
A limited (listed) company say "ABC Ltd." had transferred its assets to its 100% subsidiary say "DEF Pvt. Ltd" via slump sale. Alongwith all other assets, FDR had also been transferred in the books by the holding to the subsidiary. However, in the bank, somehow the FDRs still remained in the name of Holding Co. Now :
(1) The audited Balance Sheet of ABC Ltd. for 30th September 2011 had been filed with ROC but no provision for interest had been taken for.
(2) Bank had paid interest on FDR and the TDS certificate to ABC Ltd & not to DEF Ltd.
(3) The interest & TDS figure is being reflected in Form 26AS of ABC Ltd.
Now the company wants to show the interest & TDS figure in the books of subsidiary "DEF Pvt. Ltd." & claim the TDS in the return of "DEF Pvt. Ltd." How can it do so?
10 August 2012
You can put a note on notes to accounts of the situation and incorporate the FDR amount and Interest there on but TDS figure cannot be recorded as the certificate is issued in name of old company.
You can do one thing, show the receivable from holding company in books of new company for TDS amount. TDS can be claimed only in old company.
If bank agree to change the FDR's and accordlingly revise the TDS return then only you can claim the TDS in new company.
10 August 2012
Thanks Mr. Prashant. But wouldn't Income Tax Assessing Officer would ask to offer the interest income in the books of Holding Co. if TDS is claimed by the holding company?
CAclubindia
