The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at various types of transfers which are exempted from capital gains, cost of acquisition in certain specified cases, capital gains on specified assets and finally, capital gains in case of non-residents. Also, the Webinar will touch upon relevant Judicial Precedents.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at various types of transfers which are exempted from capital gains, cost of acquisition in certain specified cases, capital gains on specified assets and finally, capital gains in case of non-residents. Also, the Webinar will touch upon relevant Judicial Precedents.
WHAT IS DEPOSITS AND WHAT IS NOT DEPOSITS UNDER COMPANIES ACT 2013.The Legal Magister
Theory lecture of Deposits and what is not deposits under Companies Act ,2013.
For Law related articles please visit our Blog- http://thelegalmagister.blogspot.com/
Thank you for watching the video :)
This presentation enumerates the practical aspects of merger, demerger and reduction of capital and the strategies involved therein. It also highlights certain key issues involved in corporate restructuring.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
Le nuove frontiere dell'AI nell'RPA con UiPath Autopilot™UiPathCommunity
In questo evento online gratuito, organizzato dalla Community Italiana di UiPath, potrai esplorare le nuove funzionalità di Autopilot, il tool che integra l'Intelligenza Artificiale nei processi di sviluppo e utilizzo delle Automazioni.
📕 Vedremo insieme alcuni esempi dell'utilizzo di Autopilot in diversi tool della Suite UiPath:
Autopilot per Studio Web
Autopilot per Studio
Autopilot per Apps
Clipboard AI
GenAI applicata alla Document Understanding
👨🏫👨💻 Speakers:
Stefano Negro, UiPath MVPx3, RPA Tech Lead @ BSP Consultant
Flavio Martinelli, UiPath MVP 2023, Technical Account Manager @UiPath
Andrei Tasca, RPA Solutions Team Lead @NTT Data
Welocme to ViralQR, your best QR code generator.ViralQR
Welcome to ViralQR, your best QR code generator available on the market!
At ViralQR, we design static and dynamic QR codes. Our mission is to make business operations easier and customer engagement more powerful through the use of QR technology. Be it a small-scale business or a huge enterprise, our easy-to-use platform provides multiple choices that can be tailored according to your company's branding and marketing strategies.
Our Vision
We are here to make the process of creating QR codes easy and smooth, thus enhancing customer interaction and making business more fluid. We very strongly believe in the ability of QR codes to change the world for businesses in their interaction with customers and are set on making that technology accessible and usable far and wide.
Our Achievements
Ever since its inception, we have successfully served many clients by offering QR codes in their marketing, service delivery, and collection of feedback across various industries. Our platform has been recognized for its ease of use and amazing features, which helped a business to make QR codes.
Our Services
At ViralQR, here is a comprehensive suite of services that caters to your very needs:
Static QR Codes: Create free static QR codes. These QR codes are able to store significant information such as URLs, vCards, plain text, emails and SMS, Wi-Fi credentials, and Bitcoin addresses.
Dynamic QR codes: These also have all the advanced features but are subscription-based. They can directly link to PDF files, images, micro-landing pages, social accounts, review forms, business pages, and applications. In addition, they can be branded with CTAs, frames, patterns, colors, and logos to enhance your branding.
Pricing and Packages
Additionally, there is a 14-day free offer to ViralQR, which is an exceptional opportunity for new users to take a feel of this platform. One can easily subscribe from there and experience the full dynamic of using QR codes. The subscription plans are not only meant for business; they are priced very flexibly so that literally every business could afford to benefit from our service.
Why choose us?
ViralQR will provide services for marketing, advertising, catering, retail, and the like. The QR codes can be posted on fliers, packaging, merchandise, and banners, as well as to substitute for cash and cards in a restaurant or coffee shop. With QR codes integrated into your business, improve customer engagement and streamline operations.
Comprehensive Analytics
Subscribers of ViralQR receive detailed analytics and tracking tools in light of having a view of the core values of QR code performance. Our analytics dashboard shows aggregate views and unique views, as well as detailed information about each impression, including time, device, browser, and estimated location by city and country.
So, thank you for choosing ViralQR; we have an offer of nothing but the best in terms of QR code services to meet business diversity!
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
2. AMALGAMATION [Section 2(1B) of I.T. Act]
"Amalgamation", in relation to companies, means the merger of one or more companies
with another company or the merger of two or more companies to form one company (the
company or companies which so merge being referred to as the amalgamating company
or companies and the company with which they merge or which is formed as a result of
the merger, as the amalgamated company) in such a manner that-
(i) All the property of the amalgamating company or companies immediately before the
amalgamation becomes the property of the amalgamated company by virtue of the
amalgamation;
(ii) All the liabilities of the amalgamating company or companies immediately before the
amalgamation become the liabilities of the amalgamated company by virtue of the
amalgamation;
(iii) Shareholders holding not less than nine-tenths in value of the shares in the
amalgamating company or companies (other than shares already held therein immediately
before the amalgamation by, or by a nominee for, the amalgamated company or its
subsidiary) become shareholders of the amalgamated company by virtue of the
amalgamation.
3. TAX CONCESSIONS/ INCENTIVES IN CASE OF AMALGAMATION:
1. Tax concessions to amalgamating company
2. Tax concessions to shareholders of the amalgamating company
3. Tax concessions to amalgamated company
1. Tax concessions to amalgamating company:
U/S 47(vi) any transfer, in a scheme of amalgamation, of a capital asset by the
amalgamating company to the amalgamated company if the amalgamated company is an
Indian company; shall not be regarded as transfer for the purpose of capital gains.
U/S 47 (vi) (a) Any transfer, in a scheme of amalgamation, of a capital asset being a
share or shares held in an Indian company, by the amalgamating foreign company to the
amalgamated foreign company, shall not be regarded as transfer for purpose of capital
gains if -
(a) At least twenty-five per cent of the shareholders of the amalgamating foreign
company continue to remain shareholders of the amalgamated foreign company, and
(b) Such transfer does not attract tax on capital gains in the country, in which the
amalgamating company is incorporated.
2. Tax concessions to shareholders of the amalgamating company:
U/S 47 vii) Any transfer by a shareholder, in a scheme of amalgamation, of a capital
asset being a share or shares held by him in the amalgamating company, shall not be
regarded as transfer for the purpose of capital gains if –
(a) The transfer is made in consideration of the allotment to him of any share or shares in
the amalgamated company, and
(b) The amalgamated company is an Indian company.
4. 3. Tax concessions to amalgamated company:
Conditions to be satisfied for being eligible for tax concession:
• The amalgamation satisfies all the three conditions laid down in section 2
(1B);and
• The amalgamated company is an Indian country.
a. Expenditure on scientific research [U/S 35(5)]:
When an amalgamating company transfers any asset represented by capital
expenditure on the scientific research to the amalgamated Indian company in a
scheme of amalgamation provisions of section 35 shall be applicable-
• unabsorbed expenditure on scientific research of the amalgamating company
will be allowed to be carried forward and set off in the hands of the
amalgamated company,
• if such asset ceases to be used in the previous year for scientific research
related to the business of amalgamated company and is sold by the
amalgamated company the sale price to the extend of cost of asset shall be
treated as business income and the excess of sale price over the cost shall be
subject to the provisions of capital gain.
b. Expenditure on acquisition of patent rights or copyrights[U/S 35A(6)]:
If patent or copyright acquired by the amalgamating company is transferred to
amalgamated Indian company, provisions of section 35A shall be applicable to
the amalgamated company
The expenditure on patent rights or copyrights to the extend not yet written off
shall be allowed as deduction to the amalgamated company in the same number of
balanced installments.
However if such expenditure is incurred by the amalgamating company after
31-3-1998, deduction U/S 35A is not allowed and such expenditure shall be
eligible for depreciation as intangible asset.
5. c. Treatment of preliminary expenses [U/S 35D(5)]:
When and amalgamating company merges with an amalgamated company under a
scheme of amalgamation, the amount of preliminary expenses of the
amalgamating company to the extend not yet written off shall be allowed as
deduction to the amalgamated company in the same manner as would have been
allowed to the amalgamating company.
d. Treatment of capital expenditure on family planning [U/S 36(1)(xi)]:
If Asset representing capital expenditure on family planning is transferred by the
amalgamating company to the amalgamated company under a scheme of
amalgamation, such expenditure shall be allowed as deduction to the
amalgamated company in the same manner as would have been allowed to the
amalgamating company.
e. Treatment of bad debts[U/S 36(1)(vii)]:
When due to amalgamation debts of the amalgamating company has been taken
over by amalgamated company, and subsequently, such debts turn out to be bad, it
shall be allowed as deduction to the amalgamated company.
f. carry forward and set off of business losses and unabsorbed depreciation of
the amalgamating company
The amalgamated company shall be allowed to carry forward and set off the
business losses and unabsorbed depreciation of the amalgamating company, if all
the conditions of section 72A are satisfied.
6. Conditions:
• The amalgamation should be of a company owning an industrial undertaking or
ship
• The amalgamated company holds at least 3/4th of the book value of the fixed
assets of the amalgamating company for a continuous period of 5 years from the
date of amalgamation
• The amalgamated company continues the business of the amalgamating company
for a period 5 years from the date of amalgamation
• The amalgamated company fulfills such other conditions as may be prescribed to
ensure to ensure the revival of the business of the amalgamating company.
g. Deduction available U/S 80-IA & 80-IB:
When an undertaking which is entitled to deduction U/S 80-IA & 80-IB is
transferred under a scheme of amalgamation to the amalgamated company,
before the expiry of period of deduction then-
• No deduction shall be available to the amalgamating company for the previous
year in which the amalgamation takes place under the section
• Deduction shall be available to the amalgamated company in the same way in
which it would have been available to the amalgamating company.
7. DEMERGER [section 2(19AA)]:
"Demerger", in relation to companies, means the transfer, pursuant to a scheme of
arrangement under sections 391 to 394 of the Companies Act, 1956 (1 of 1956), by a
demerged company of its one or more undertakings to any resulting company in such a
manner that - (i) All the property of the undertaking, being transferred by the demerged
company, immediately before the demerger, becomes the property of the resulting
company by virtue of the demerger;
(ii) All the liabilities relatable to the undertaking, being transferred by the demerged
company, immediately before the demerger, become the liabilities of the resulting
company by virtue of the demerger;
(iii) The property and the liabilities of the undertaking or undertakings being transferred
by the demerged company are transferred at values appearing in its books of account
immediately before the demerger;
(iv) The resulting company issues, in consideration of the demerger, its shares to the
shareholders of the demerged company on a proportionate basis;
(v) The shareholders holding not less than three-fourths in value of the shares in the
demerged company (other than shares already held therein immediately before the
demerger, or by a nominee for, the resulting company or, its subsidiary) become
shareholders of the resulting company or companies by virtue of the demerger, otherwise
than as a result of the acquisition of the property or assets of the demerged company or
any undertaking thereof by the resulting company;
(vi) The transfer of the undertaking is on a going concern basis;
(vii) The demerger is in accordance with the conditions, if any, notified under sub-section
(5) of section 72A by the Central Government in this behalf.
TAX CONCESSIONS/ INCENTIVES IN CASE OF DEMERGER:
1. Tax concessions to demerged company
2. Tax concessions to shareholders of the demerged company
3. Tax concessions to the resulting company
8. 1. Tax concessions to demerged company:
U/S 47 (vib) any transfer, in a demerger, of a capital asset by the demerged company to
the resulting company, shall not be considered as transfer for capital gain purposes if the
resulting company is an Indian company
U/S 47(vic) any transfer in a demerger, of a capital asset, being a share or shares held in
an Indian company, by the demerged foreign company to the resulting foreign company,
shall not be treated as transfer for capital gain purposes if–
(a) At least seventy-five per cent. Of the shareholders of the demerged foreign company
continue to remain shareholders of the resulting foreign company; and
(b) Such transfer does not attract tax on capital gains in the country, in which the
demerged foreign company is incorporated.
2. Tax concessions to shareholders of the demerged company[U/S 47(vid)]:
Any transfer or issue of shares by the resulting company, in a scheme of demerger to the
shareholders of the demerged company, shall not be treated as transfer for capital gain
purpose, if the transfer or issue is made in consideration of demerger of the undertaking.
In case of a demerger the existing shareholders of the demerged company will now hold
Shares in resulting company and shares in demerged company.
In case if the shareholders transfer any of the above shares subsequent to the demerger,
the cost of such shares shall be calculated as under:
Cost of acquisition of the shares=
Cost of acquisition of shares held by net book value of the assets transferred in demerger
The assessee in the X
Demerged company net worth of the demerged company before demerger
9. 3. Tax concessions to the resulting company:
The resulting company shall be eligible for tax concessions only if the following two
conditions are satisfied:
• The demerger satisfies all the conditions laid down in section 2(19AA);
and
• The resulting company is an Indian company.
a. Expenditure on acquisition of patent rights or copyrights [U/S 35A (7)]:
If patent or copyright acquired by the demerged company is transferred to
resulting Indian company, provisions of section 35A shall be applicable to the
resulting company
The expenditure on patent rights or copyrights to the extend not yet written off
shall be allowed as deduction to the resulting company in the same number of
balanced installments.
However if such expenditure is incurred by the demerged company after
31-3-1998, deduction U/S 35A is not allowed and such expenditure shall be
eligible for depreciation as intangible asset.
b. Treatment of preliminary expenses [U/S 35D(5)]:
When the undertaking of an Indian company which is entitled to deduction of
preliminary expenses is transferee before the expiry of 10/5 years, as the case may
be, to another company under a scheme of demerger, amount of preliminary
expenses of the demerged company to the extend not yet written off shall be
allowed as deduction to the resulting company in the same manner as would have
been allowed to the demerged company. The demerged company shall not be
allowed deduction of the same after demerger.
10. c. Treatment of bad debts [U/S 36(1)(vii)]:
When due to demerger, debts of the demerged company are taken over by the
resulting company and subsequently, such debt becomes bad, then it shall be
allowed as deduction to the resulting company.
d. Carry forward and set off of business losses and unabsorbed depreciation of
the amalgamating company [U/S 72A(4) 7 (5)]:
The accumulated loss and unabsorbed depreciation, in a demerger, are
allowed to be carried forward by the resulting company if these are directly
relatable to the to the undertaking proposed to be transferred. Where it is not
possible to directly relate it to the undertaking, such loss and depreciation
shall be apportioned between the demerged and resulting company in the
proportion of assets coming to the share of each as a result of the demerger.
e. Deduction available U/S 80-IA & 80-IB:
When an undertaking which is entitled to deduction U/S 80-IA & 80-IB is
transferred under a scheme of demerger to the resulting company, before the
expiry of period of deduction then
No deduction shall be available to the demerged company for the
previous year in which demerger takes place under the section
Deduction shall be available to the resulting company in the same
way in which it would have been available to the demerged
company.