27 May 2012
Hi, request you to please guide me on the below matter urgently. Summary: Mauritius company own 100% in india renewable energy company & renewable company own 30% stake in Public renewable energy comany ( not listed).
my question is : (A) can we wind-up Mauritius own company in india , if yes then what is the treatment of investment, it is any tax applicable ? (B) instead of wind-up can we merge the indian company with parent company.
please reply me Urgently on my email manojranchi@gmail.com
31 May 2012
Dear Manoj, First part of query is on taxability of transaction. On wind up anything paid to owner shall be taxable as capital gains. It also requires treatment of subidiary shares and issue of its valuation if the same are passed on to the share holders of Mauritius based holding company. There are multiple issues which need to be checked. Advised approach proper professional help.
Secondly, merger is possible option too.
Regards, cavishalshah@gmail.com
Querist :
Anonymous
Querist :
Anonymous
(Querist)
03 June 2012
Thanks Mr. Shah,
But i my knowledge the new Companies Bill 2011, it is proposed that with prior approval of the RBI a merger can happen even when the transferee is a foreign company. and a foreign company and hence the envisaged merger will be permitted only on the Companies Bill 2011 being enacted.
Please guide how to merge with mautitius base company.
CAclubindia
