banner_ad

Exceptional item in statement of p&l

Others 255 views 2 replies
does fee related to demerger or merger is exceptional item ?
Replies (2)

Yes, GST (Goods and Services Tax) does have an impact on mergers and acquisitions (M&A). Here are some key points to consider: Transfer of Business: Under the GST regime, the transfer of a business as a going concern, including mergers, amalgamations, and acquisitions, is generally not subject to GST. This means that such transfers do not attract any tax liability under GST1. Input Tax Credit (ITC): During M&A transactions, the availability and transfer of Input Tax Credit can be a significant consideration. Proper due diligence is required to ensure that ITC is appropriately transferred and utilized2. Registration and Compliance: The entities involved in M&A need to ensure compliance with GST registration requirements. This includes transferring or obtaining new GST registrations for the merged or acquired entity2. Inter-Company Transactions: Transactions between the merging entities during the interim period can be subject to GST. Proper documentation and compliance are necessary to avoid any tax liabilities2. Overall, while the transfer of business itself may not attract GST, other aspects such as ITC, registration, and inter-company transactions need careful consideration to ensure compliance and optimize tax benefits.

Exceptional item fee is related


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details