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Agenda for M&A taxation
Clarify that only those assets and liabilities which are exclusively identifiable with a business need to be transferred to the acquirer.Put through suitable amendments in the M&A tax laws to deal with situations wherein the merged entities want to settle the purchase consideration partly by paying cash and partly by issuing its shares.Make the court process required in a merger or a demerger applicable only to widely-held listed companies. Have a special bench in the Company Law Board (CLB)to deal with mergers and demergers.Lay down clearcut rules and guidelines for valuing shares for fiscal purposes.Defer tax on stock swaps in M&A deals to the point of sale. Better still, tax-exempt share swaps.Grant approvals to cross-border M&A deals in a distinctly different way.Extend the scope of M&A to non-manufacturing and service companies.Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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