Thanks for your valuable information, I really appreciate it.
I need your help further :
in my clients case
- the company is an existing closely held company (with son and daughter-in-law as directors), a trading entity of products manufactured by proprietary concern,
which wants to take over the proprietary concern owned by the father, which is a manufacturing entity.
and they are planning to take manufacturing license in the Company as succession
So, in this case, can this be termed as succession under IT Act and Can they enjoy the Capital Gains exemption.
Please reply at the earliest as they wish to acquire on 31st March and also would appreciate if you can check and advise over the following process / steps as to whether they are in order or needs some amendments:
Steps for Acquiring:
1. Hold a Board meeting for moving proposal for takeover of business and to do the needful activities
2. Execute an MOU between the parties for acquiring / takeover. ALso obtain an affidavit on stamp paper from the prop. that the firm will shut down after this incorporation.
3. The first clause of the Moa will be amended to indicate the takeover of firm by the company.
4. File revised F-2 (allotment of shares), 18, 32 in addition to take over the business of Proprietorship firm and proceed to allot shares.