Merger of company
Querist :
Anonymous
(Querist) 15 January 2012
This query is : Resolved
Hi,
If 2 pvt company mergered how to change excise, VAT, service Tax, PAN and TAN no.
Whether we should surrender the existing one, and apply for new no. ifso who we should C/F the excise and Service tax credit to new registration no.
Advocate. Arunagiri
(Expert) 15 January 2012
If after merger you are going to create a new company, you have to get a new numbers.
If you are merging one company into another you need not get a new one.
Querist :
Anonymous
(Querist) 15 January 2012
Dear Arunagiri,
Company not going to create new company, existing company dissolves and all the registration to be changed to new company name
Whether we need to send change of company name and PAN no. to excise and service tax or we need to apply for new excise and ST no.
Advocate. Arunagiri
(Expert) 15 January 2012
This is called merger through consolidation. The companies are legally dissolved, new company is formed. Only the assets and liabilities will be transferred to the new company.
The new company will start its new operation. So, the new company ought to get the new PAN and TAX numbers.
Querist :
Anonymous
(Querist) 15 January 2012
Thanks, if we apply for new PAN and TAN,
Whether we also need to have new excise reg no. then how to c/f the cenvat credit to new no.
Advocate. Arunagiri
(Expert) 15 January 2012
As per the CBEC circular, companies can utilise 100% of the carry-forward balance of accumulated Cenvat credit as on April 1, 2008, to claim credit on service tax.
I think, the Cenvat credit, ought to be credited in to the new New No. As long as the new company is paying taxes, they can enjoy the Cenvat Credit.
Let us wait for other experts to give their views.
Advocate. Arunagiri
(Expert) 15 January 2012
You may see the rules as follows:-
CENVAT Credit Rules, 2004
10. Transfer of CENVAT credit. -
(1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory.
(2) If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business.
(3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise.
Devajyoti Barman
(Expert) 15 January 2012
rightly advised above and I agree with him.
Raj Kumar Makkad
(Expert) 15 January 2012
No room has been left by senior expert Arunagiri for others. I do agree with him.
Deepak Nair
(Expert) 16 January 2012
Well advised by Mr.Arunagir,
Dear Arunagiri Sir, thanks a lot for throwing light on the said subject.
Sailesh Kumar Shah
(Expert) 16 January 2012
Mr.Arunagiri has already been given detailed opinion. Now, no room left to add more.
