22 September 2007
A EXITING P LTD CO MAKE A SUBSI P LTD AND GIVES THE LOAN TO SUB ON INTEREST THE SUBSI CO BUYS A PLOT AND LATTER SOLD . HOW THE INTT IN THE HANDS OF HOLDING CO BE TREATED AS REVENUE OR CAPITAL. if the holding co also borrow from banks on interest whether the interest paid to the bank by holding co is to be capitalised since the loan is transfered to the subsidiary co. the subsidiary co purchased plot from this amt. or to be trated as revenue since the holding co is also receiving the intt from the subsi. Any precautions in respect to ITAX & Cos Act And discloser requirements
24 September 2007
U please clarify me what is the nature of Holding and subsidiary companies business. Why i am asking the treatment of interest is differing from the cos engaging real estate business and other business activities.Whether both are Indian companies ?
26 September 2007
The holding co is engaged in other activities other than real estate. But the subsi is engaged in real estate co. Both cos are indian cos.
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