Representations to change the tax law have been made by companies which want to take over entities facing bankruptcy proceedings. The government has so far not agreed to the proposal.
Synopsis
Senior tax practitioners believe that tax authorities should clear the fog on the issue at a time the government has proposed a bad bank to take over sticky loans.
Mumbai: Business houses interested in acquiring debt-saddled companies have reached out to the government seeking clarity on possible tax that a target company may be faced with.Once lending banks take a haircut and settle loans at a lower amount, tax officials take a view that the borrower has to pay tax on the reduction in loan liability.Senior tax practitioners believe that tax authorities should clear the fog on the issue at a time the
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