PR No – 110
29th May, 2025
New Delhi
PHDCCI organised Seminar on Taxation Issues in Business restructuring
The Direct tax Committee of PHDCCI organised Seminar on Taxation Issues in Business restructuring (Hybrid mode) on Tuesday 27th May, at PHD House, New Delhi.
Mr. Mukul Bagla Chair Direct Taxes Committee welcomed the Chief Guest of the seminar Mr. Ved Jain and other speakers and delegates. In his welcome address He said that in today’s ever-evolving business climate, corporate strategies increasingly rely on consultation efficiencies and informed decision-making. With the growing trend of demergers, acquisitions, and revival of sick companies—especially under initiatives like Make in India—it is clear that unlocking value across different undertakings is a priority. As multinational corporations invest even in niche sectors like healthcare, it becomes essential to understand the tax implications, commercial factors, and financial dynamics that influence such strategic moves.
Mr. Ved Jain, Past President ICAI, Founder and Mentor, Ved Jain & Associates gave an over view of the taxation issues in business restructuring taking all relevant points. He said that When undertaking business restructuring, the key question becomes: what will be the tax efficiency? The three primary costs GST, income tax, and other levies—must be carefully considered. A business can be carried out through various vehicles or models, each with different implications. Restructuring today is seen more as a transformation rather than a transfer; however, when it does result in a transfer, tax liabilities inevitably come into play. He complimented and appreciated PHDCCI to conceptualize and organize such a wonderful seminar on extremely important subject.
Dr. Rakesh Gupta, Co-Chair of the Direct Taxes Committee discussed the important aspects of Business Restructuring. During the seminar, He not only shared his expertise but also took the time to address queries from the audience. He summed up the seminar through iconic professional poetry , blending insight with artistic expression.
Ms Pallavi Dinodia, Co Chair Direct Tax Committee while moderating the panel discussion said that the Business Restructuring, involves reorganizing a company’s operations, structure, or finances to improve performance and adaptability. Further took questions on how to address the issues and challenges surrounding mergers, demergers, and convertible preference shares—many such topics were discussed and understood in this context.
Mr Suyash Raj Nahata, Co-Chair Direct Tax Committee said Once the merger order is passed, Several important post-order compliances must be followed to avoid future notices and ensure a smooth transition. ROC Filings, Surrender of PAN/TAN: In case of a merger, the PAN and TAN of the merging company must be surrendered to avoid unwanted notices from the Income Tax Department. Income Tax Compliance – Section 170: returns should be filed appropriately so that credit entitlements can be claimed post-merger.
Mr Sameer Gogia, Executive Director, Deloitte – Global Business Tax said that from a practical perspective, said that while considering certificates or asset valuations, controversies often arise. It becomes especially relevant during asset transfers, where Article 281 of the Income Tax Act comes into play—particularly in cases involving immovable assets like land. In such scenarios, we generally advise obtaining a 281 clearance from the tax department to ensure compliance and avoid future disputes.
Ms Poonita Harsh Kundra, Partner, Vaish Associates Advocates said that every business split whispers opportunity, but without tax foresight, even the most strategic demerger can drain value. She delved into the intricacies of demergers, shedding light on critical tax considerations that lie at the heart of every successful restructuring deal
The session witnessed the presence of the former President of PHDCCI, Mr. Suman Jyoti Khaitan, and few MCM members whose participation added great value to the Seminar. The session concluded after 3 hours of insightful discussions, with about 80 Paid Participants.
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Warm Regards,
Media Division, PHDCCI