TMI BlogConversion of An Indian Branch of Foreign Company into Subsidiary India Company - Section 115JGX X X X Extracts X X X X X X X X Extracts X X X X ..... ough its branch situated in India and such branch is converted into a subsidiary company thereof, being an Indian company (hereafter referred to as an Indian subsidiary company) in accordance with the scheme framed by the Reserve Bank of India, then, notwithstanding anything contained in the Act and subject to the conditions as may be notified by the Central Government in this behalf, - th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion would not be considered while determining the value of the assets. Foreign bank nominees should hold 100% of share capital of Indian subsidiary till the end of the year of conversion at least 51% of the voting power of Indian subsidiary for a period of next 5 PY s. Foreign company does not receive any consideration or benefit other than by way of allotment of shares in the India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as lossess and depreciation of subsidiary company for the year in which conversion took place. Note: Losses can be carried forward for fresh 8 years. Determination of actual cost u/s 43(1) The actual cost of the block of assets in case of the Indian subsidiary company shall be the written down value of the block of assets as in the case of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be credit balance of Indian Subsidiary. Non-applicability of section 56(2) (x) Section 56(2) (x) shall not apply on the receipt shares by foreign bank from Indian subsidiary on conversion. (2) In case of failure to comply with any of the conditions specified in the scheme or in the notification issued u/s 115JG(1), all the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee for the said previous year and make the necessary amendment :and The provision of the section 154 shall ,so far as may be, apply thereto and the period of four year specified in section 115JG(7) being reckoned from the end of the previous year in which the failure to comply with the condition referred to section 115JG(1) take places. - Manuals - Ready reckoner - Law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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