Mergers & Acquisition - M&A Advisory Services

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How do you create solutions that would solve the complexities of the future?

What is the business legacy that you want to create?

How would you be able to answer complex business problems?

We stand on the edge of a technological revolution that will fundamentally change the way we live, think, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has seen or experienced before. We do not yet know just how it will unfold, but one thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders. At Incorp we firmly believe that, in this hyperkinetic environment, it is important to have an inclusive approach towards transformation and growth. We support our clients solve issues and collaborate with them in their growth journey. We are vanguards for their business interests however objective to their goals and aspirations. We help unlock the true potential of their business by asking the right questions, by doing the right things, and by better consulting.

Frequently Asked Questions

What are the important tax provisions relating to amalgamation?

Whenever there is an amalgamation, the accumulated losses and unabsorbed depreciation of the amalgamating company shall be deemed to be loss or, as the case may be, allowance for the unabsorbed depreciation of the amalgamated company for the previous year in which the amalgamation was effected.

What are the tax implications from a seller's perspective in case of acquisition of the entire business?

In case of a slump sale, the seller is liable to pay tax on gains derived on the transfer of the undertaking at the prevailing tax rates based on the time for which the business undertaking has been held.

What are the tax implications from a buyer's perspective in case of acquisition of the entire business?

In case of slump sale, the tax losses are not transferred to the transferee entity. Also, the credit in respect of minimum alternate taxes is retained with the transferor company.

What is the tax treatment in respect of expenses incurred on amalgamation?

The transferee entity is allowed a deduction for the expenditure incurred wholly and exclusively for the purpose of amalgamation equally over a period of five years starting from the year in which the amalgamation takes place.

Is the transferee entity eligible for any tax holidays?

Where the transferor entity is eligible for any tax holidays, the continuity of those tax holidays in the hands of the transferee entity is usually maintained on an amalgamation. However, in some prescribed exceptions, Income tax law provides that the tax holidays will not be continued on an amalgamation.