27 February 2008
TRANSFER OF ASSETS BY A HOLDING COMPANY TO ITS WHOLLY OWNED SUBSIDIARY OR VICE VERSA WILL NOT ATTRACT CAPITAL GAINS TAX UNDER SEC 47iv/v.(subject to exceptions stated there in). OR ELSE, IF YOU TRANSFER land at INDEXED VALUE (of ORIGINAL COST), THE TAX INCIDENCE WILL BE minimum/ LOW. THE TIME TAKING ROUTE( WHERE YOU AVOID BOTH TAX AND STAMP DUTY) IS MERGER OR AMALGAMATION, THROUGH HIGH COURT. did you try power of attorney agreement of transfer. you can get away with a lumpsum fees payment instead of stamp duty at respective states rates. ALSO I KNOW CASES WHERE LAND FROM OWNER TO DEVELOPER IS TRANSFERRED AT COST TO PURCHASER WITH A PROMISE OF FUTURE SHARE OF PROFIT (AFTER DEVELOPMENT) TO LAND OWNER ( WHICH OF COURSE IS TAXABLE AS AND WHEN IT IS RECEIVED IN A PRE AGREED SHARE) R.V.RAO
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