The finance ministry has said manufacturing units in Himachal Pradesh and Uttarakhand will continue to enjoy tax concessions even if its ownership changes, enabling mergers and acquisitions in such undertakings. Besides, the units will retain tax benefits on expansion or relocation within the exempted area, according to a directive issued by the Central Board of Excise and Customs (CBEC). "In case of change in the ownership of an already existing unit, (tax) benefits would pass on to the new owner as the exemption is extended to the 'unit' and not on the basis of 'ownership'," the CBEC said. The ministry's circular followed queries by companies seeking clarifications on the status of tax concessions after a change in ownership.
Source: Economic Times
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