47.Amalgamation of companies M. VAT ACT

 

 
47.Amalgamation of companies 
 
(1)When two or more companies are to be amalgamated by the order of Court or of the Central Government and passed after the appointed day and is to take effect from a date earlier to the date of the order and any two or more of such companies have sold or purchased any goods to or from each other in the period commencing on the date from which the order is to take effect and ending on the date of the order, then such transactions of sale and purchase shall be included in the turnovers of sale or purchase of the respective companies and shall be assessed to tax accordingly.
Notwithstanding anything contained in the said order, for all of the purposes of this Act, the said two or more companies shall be treated as distinct companies for all the periods upto the date of the said order and the registration certificates of the said companies shall he cancelled. where necessary, with effect from the date of the said order.
          (2A)(a) When any company is to be demerged by the order of the court or of the Central Government passed after the appointed day, and is to take effect from a date earlier to the date of the order, then for all of the purposes of this Act, it shall be presumed that the two or more companies brought into existence by the operation of the said order have not sold or purchased any goods to each other from the date of effect of the order to the date of the order.
(b) Notwithstanding anything contained in the said order, for all the purposes of this Act, the said two or more companies shall be treated as a single company for all the periods upto the date of the said order and the registration certificate of the company to be demerged shall be cancelled with effect from the date of the said order and the said two or more companies shall, subject to rules, be granted registration certificates from the date of the said order.
(3) Words and expressions used in this section but not defined shall have the respective meanings assigned to them in the Companies Act,1956.