Tax Implications of Demerger

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..... Tax Implications of Demerger
Query (Issue) Started By: - manoj gupta Dated:- 5-7-2010 Last Reply Date:- 7-7-2010 Income Tax
Got 2 Replies
Income Tax
A Pvt. Ltd. company demerges into two .....

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..... companies. It transfers its stock of gold to two companies at book values. what are the tax implications of this. Pls. clarify. Reply By Rama Krishana: The Reply: What was the nature of stock of gold .....

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..... ? Whether it was held as stock in trade or as capital assets? You may read section 47 of the Income Tax where in case of dmerger (in certain situations) transfer is not treated as transfer in the hand .....

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..... s of transferor and or read explanation 7A to the section 43, which read as, "Explanation 7A.—Where, in a demerger, any capital asset is transferred by the demerged company to the resulting company a .....

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..... nd the resulting company is an Indian company, the actual cost of the transferred capital asset to the resulting company shall be taken to be the same as it would have been if the demerged company had .....

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..... continued to hold the capital asset for the purpose of its own business : Provided that such actual cost shall not exceed the written down value of such capital asset in the hands of the demerged co .....

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..... mpany Reply By manoj gupta: The Reply: The gold was held as stock in trade. what are the implications.
Discussion Forum - Knowledge Sharing .....

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