Meaning of wholly owned subsidiary company – For the purpose of Advance Ruling

What is the meaning of Wholly Owned Subsidiary Company for seeking Advance Ruling for the issues related to Service Tax, Central Excise, Customs and Income Tax etc?

What is the definition of wholly owned subsidiary company?

Surprise! The term "Wholly Owned Subsidiary Company" is neither defined in the Companies Act, 1956 nor under any other statute which refers this term for the purpose of "Advance Ruling"

As per the provision of the Companies Act, 1956, in no circumstances a person can hold 100% shares of a company.

 Now, the Advance Ruling Authority (AAR), New Delhi,  while disposing the application of M/s IJM (INDIA) INFRASTRUCTURE LIMTED reported in 2007 TMI (887) for seeking advnacr ruling for Applicability of Service Tax on Certain Issues, has held that to constitute a wholly owned subsidiary company, at least 99% of the shares of such company must be held by the Holding Company.