Global

Details

  • Service: Tax, International Corporate Tax, Mergers & Acquisitions, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/13/2013

India - Refunds involving corporate group; loss carryforwards in reorganizations 

March 13: The KPMG member firm in India has prepared reports on the following developments (read the March 2013 reports by clicking on the hyperlinks provided below):
  • Taxpayer’s refund cannot be used to offset tax liability owed by another member company of the corporate group: The Allahabad High Court held that an adjustment of a taxpayer’s tax refund against the amount of tax owed and due by another company / member of the corporate group is not permitted under any provision of the Income-tax Act, 1961.

    The case is: Usha Polytex Ltd. Read a March 2013 report [PDF 194 KB]


  • Conditions for carrying forward, offsetting accumulated losses in amalgamation: The Mumbai Bench of the Income-tax Appellate Tribunal held that, with respect to offsets of losses of an amalgamating company, by the amalgamated company, there must be compliance with conditions under section 72A of the Income-tax Act, 1961, which must be evaluated per the amalgamating company only—and not in relation to all amalgamating companies.

    The case is: Bayer Material Science Pvt. Ltd. Read a March 2013 report [PDF 199 KB]]


  • Computing the “creeping acquisition” limit under the takeover rules: The Securities and Exchange Board of India (SEBI) clarified how to compute the 5% limit with respect to a “creeping acquisition” under Regulation 3(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulation).

    Read a March 2013 report [PDF 165 KB]


  • Several independent housing units can constitute “a residential house” for purposes of the exemption under section 54: The Delhi High Court held that two independent houses within the same building can constitute “a residential house” for purposes of the exemption under section 54 or 54F of the Income-tax Act, 1961.

    The case is: Gita Duggal. Read a March 2013 report [PDF 199 KB]



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