Merger & acquistion

This query is : Resolved

Nitin (Querist)
Follow

14 April 2012 `A` pvt Ltd com wants to get merge with `B ` pvt ltd company ,what will be the accounting implications:
-If they form a new company C ,specially what will be position of A & B after C is being made ?& implications from income tax point of view?
-If A & is being merged with B(or say B Acquired A ) ,& share holders of A get shares in B & company B will be contiune to operate ??& implications from income tax point of view?

Is there any agreement /legal deed to made & how company A & B & company A in cases above will be disloved .?& implications from income tax point of view?

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

14 April 2012 If there are mergers, there will not be any implications. However, if they are only acquisitions, then the brought forward loss if any of the acquired company cannot be carried forward and set off against current year incomes.