CA Day celebration 2024 Easy Office
LCI Learning

HOLDING AND SUBSIDARY COMPANY

This query is : Resolved 
Profile Image

Profile Image

(Querist)
23 April 2010 HI ALL,,,

CAN A HOLDING COMPANY SELLS ITS STOCK TO ITS 100% SUBSIDARY COMPANY.

WHAT PRECAUTIONS ARE REQUIRED TO BE TAKEN BY BOTH THE COMPANIES.

FROM INCOME TAX POINT OF VIEW

PLEASE REPLY

THANKS ALLL
Profile Image

VIKAS AGGARWAL

Profile Image

VIKAS AGGARWAL (Expert)
23 April 2010 Dear haresh,

Holding company can sell the stock to subsidary company but on arm's lenght price. otherwise the transaction can come under the sacn of section 40A(2)(a) of the income tax act.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


CA Day celebration 2024 with Tally CCI Pro

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links