Take over by Pvt Ltd Co.

This query is : Resolved

Shambhu Agarwal (Querist)
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29 April 2009 What are the obligation of Pvt. Ltd.in case of take over to a another profitable Pvt. Ltd. Co. ?
(Take over is going to be at Par)

What Compliance are required in Income Tax law ?

taxindiaconnect

taxindiaconnect (Expert)
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30 April 2009 Take over, do you mean only purchase of share and acquire controlling interest. Take over, do you mean only purchase of share and acquire controlling interest. If yes then both the entities remain separate legal entities and not big compliance requirement flows. However the transactions between the two entities would be reported in related parties schedule in balance sheet if the turnover criteria of 50 Crore ( AS 18) is met and in tax audit report also there would be similar discloser requirement under section 40A2(b). The consolidation laws I am not sure will apply to a private limited company of not