Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: empanelment :: ACCOUNTING STANDARDS
 
 
From the Courts »
 Commissioner Of Income Tax, Delhi Vs. M/s. Maruti Udyog Ltd
 Pr. Commissioner Of Income Tax - 6 Vs. M/s. Mohan Export India Private Limited
 Principal Commissioner Of Income Tax-7 Vs. Oriental International Co. Pvt. Ltd.
 Pr. Commissioner Of Income Tax-2 Vs. British Motor Car Co.(1934) Ltd
  Vidyadayani Shiksha Samiti vs. CIT (ITAT Delhi)
 Halcrow Consulting India Pvt. Ltd vs. DCIT (ITAT Delhi)
 ACIT vs. TRN Energy Pvt. Ltd (ITAT Delhi)
 Aditya Chemicals Ltd vs. ITO (ITAT Delhi)
 Gayatri Aggarwal Vs. Income Tax Commissioner & Ors.
 Paradigm Geophysical Pvt. Ltd. Vs. Commissioner Of Income Tax (International Taxation)-3, New Delhi
 Download Companies (Amendment) Act, 2017

M&A deals, de-mergers not to attract related party provision in new company law
July, 22nd 2014

Mergers and acquisitions transactions have been excluded from the ambit of related party transactions (RPT) provision in the new company law. A clarification to this effect has now been issued by the Corporate Affairs Ministry.

This move could bring some cheer to corporates as it brings down the compliance burden for them.

Prior to this, it was unclear whether related party provision (Section 188) in the new company law also applied to transactions arising out of compromises, arrangements, and amalgamations that are dealt with under the specific provisions of the Companies Act 1956. The MCA has clarified that such transactions — compromises, arrangements and amalgamations — will not attract the requirements of Section 188 of the Act.

“They (Corporate Affairs Ministry) have done the right thing, but in a wrong manner. The company law itself should be amended rather than issuing a circular”, Dolphy D Souza, Senior Partner, SR Batliboi & Co told Business Line.

He, however, added that there could be some misuse of this relief. Sai Venkateshwaran, Partner and Head of Accounting Advisory Services, KPMG in India said that the move to exclude amalgamations, demergers and other such arrangements from the scope of related party transactions is welcome.

This is because all such transactions are already subjected to specific approvals from the shareholders and the Court before they are effective. Subjecting them to related party provision (Section 188) would have led to an additional procedural burden, he added.

Lalit Kumar, Partner, J Sagar Associates, a law firm, said there could now be an amalgamation between a holding company and a subsidiary (both related parties) without the transaction getting covered under the related party provision (Section 188) of the new company law.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions