NISHITH.TV
  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York

Locations

  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York
  • Content
  • Home
  • ABOUT US
  • NDA in the Media
  • Areas of Service
  • Research and Articles
  • Opportunities
  • Contact
  • NDACloud
  • Client Access
  • Member Access
  • Events and Calender
  • How we perform
  • Knowledge anywhere, anytime
  • See our recent deals
  • Up to date legal developments
  • Case studies in M&A

Research and Articles

HTMLPDF

  • Research at NDA
  • Research Papers
  • Research Articles
  • NDA Think Tanks
  • NDA Hotline
  • New Ali Gunjan
  • Japan Desk ジャパンデスク

NDA-Hotline


  • Capital Markets Hotline
  • Companies Act Series
  • Climate Change Related Legal Issues
  • Competition Law Hotline
  • Corpsec Hotline
  • Court Corner
  • Cross Examination
  • Deal Destination
  • Debt Funding in India Series
  • Dispute Resolution Hotline
  • Education Sector Hotline
  • FEMA Hotline
  • Financial Service Update
  • Food & Beverages Hotline
  • Funds Hotline
  • Gaming Law Wrap
  • GIFT City Express
  • Green Hotline
  • HR Law Hotline
  • iCe Hotline
  • Insolvency and Bankruptcy Hotline
  • International Trade Hotlines
  • Investment Funds: Monthly Digest
  • IP Hotline
  • IP Lab
  • Legal Update
  • Lit Corner
  • M&A Hotline
  • M&A Interactive
  • Media Hotline
  • New Publication
  • Other Hotline
  • Pharma & Healthcare Update
  • Private Client Wrap
  • Private Debt Hotline
  • Private Equity Corner
  • Real Estate Update
  • Realty Check
  • Regulatory Digest
  • Regulatory Hotline
  • SEZ Hotline
  • Social Sector Hotline
  • Tax Hotline
  • Technology & Tax Series
  • Technology Law Analysis
  • Telecom Hotline
  • The Startups Series
  • White Collar and Investigations Practice
  • Yes, Governance Matters.
  • Japan Desk ジャパンデスク

Tax Hotline

May 20, 2002

Tax holiday may continue after demerger

The tax holiday provided by Sections 10A and 10B to units set up in Free trade Zones and 100% export oriented units is withdrawn in case the beneficial ownership of the firm changes. However, in the Finance Act, 2002 a new provision has been introduced in clause 9A of Sections 10A and 10B which states that a partnership or a sole proprietary firm could continue to avail the deduction under sections 10A/B even after it transferred its business to a company. The section further provided that 51% of the voting rights or shareholding was to be retained, by the partners or the sole proprietor as the case may be, until the expiry of the period for which deduction is allowed. The Act was however silent about a situation where a company transfers its undertaking to another company by way of a demerger. In demergers the interpretation is that, the ownership in shareholding changes, since the new company is a totally different legal entity. In this regard the finance ministry is trying to correct the anomaly by soon notifying changes in the above-mentioned provisions relating to software technology parks that will allow the continuance of tax holiday to demerged companies.

 
 

Source: The Economic Times, May 20, 2002

Mission and Vision


Distinctly Different

What's New


NCPCR releases guidelines to regulate child participation in Entertainment Industry
Media Hotline: August 18,2022
Draft Drugs, Medical Devices and Cosmetics Bill, 2022: Dawn of A New Era?
Pharma & Healthcare Update : August 18,2022

Events


Webinars

Transformative Innovations for the Digital Economy in India
July 27,2022 - September 14,2022

Seminar

Navigating Disputes in India
February 26,2020 - February 26,2020

This event is over. For event material please click here


Round Table

Investing In Net Zero
July 22,2022 - July 22,2022

This event is over. For event material please click here

News Roundup


News Articles

Supreme Court: Personal Guarantors can be made liable under Insolvency Code prior to any action against Principal Borrower
July 06,2022

Quotes

AIFs due for closure struggle to sell holdings in startup firms
August 11,2022

Newsletters


Media Hotline

NCPCR releases guidelines to regulate child participation in Entertainment Industry
August 18,2022

Pharma & Healthcare Update

Draft Drugs, Medical Devices and Cosmetics Bill, 2022: Dawn of A New Era?
August 18,2022

New Publication

Clinical Trials in India
August 13,2022

  • Disclaimer
  • Content
  • Feedback
  • Walkthrough
  • Subscribe
Nishith Desai Associates@2016 All rights reserved.