by Audit Analyst | Dec 14, 2025 | Joint Venture
Capital Gains on Transfer of JV Interest When a JV partner exits by selling shares or interest in the JV entity, the gains from such sale are treated as capital gains under the Income Tax Act, 1961. The gain is calculated as the difference between the sale...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Applicability of Labour Laws to JV Companies JV companies, once incorporated as legal entities (such as private limited companies or LLPs), are considered employers under Indian labour laws. They are required to comply with central and state-level labour regulations,...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Definition of a Project-Specific Joint Venture A project-specific joint venture is a temporary business arrangement formed exclusively to execute a single, defined project. It is established by two or more parties who pool resources, expertise, and capital for the...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Understanding the Conversion Structure A subsidiary is a company in which another entity (the holding company) owns more than 50% of the total share capital or controls the composition of the board of directors. To convert a JV into a subsidiary, one partner (usually...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Audit Requirement for Incorporated JVs If the JV is formed as a private limited company or public limited company, it must conduct a statutory audit under the Companies Act, 2013. Audit is mandatory irrespective of turnover or profit, meaning all companies must...
