15 October 2011
we are a group of companies wherein our two undertakings are loss making unit. we are desirous to merger the two units in our one profi making unit so that we can get the advantage of merger from taxation point of view. the two loss making cos. are engaged in business since last two years and the amt. of unabsorbed loss and depreciation is Rs. 3.5 crores.wat will be the effect of such unabsorbed loss in the amalgamated company? pls advise if any other tax planning suggestions in this regard.
15 October 2011
ONLY NON SPECULATIVE BUSINESS LOSS CAN BE CARRY FORWARD OR SET OFF U/S 72 FROM THE YEAR IN WHICH AMALAGAMATION OR MERGER TAKES PLACE.....LOSS CAN BE CARRY FORWARD BY AMALAGAMATING COMAPNY
15 October 2011
thts true bt there is a condition tht the amalgamating company should be engaged in busuness for not less than 3 years before the date of amalgamation
CAclubindia
