Introduction: Rajya Sabha Unstarred Question No. 1100 raises inquiries regarding Reliance Industries Ltd.’s (RIL) acquisitions of foreign assets, including Britain’s Stoke Park, Hamley, and US-based Mimosa Network. The article provides insights into the tax liabilities, including GST, associated with these acquisitions and details of RIL’s foreign acquisitions in the last five years.
Detailed Analysis:
1. RIL’s Foreign Asset Acquisitions:
- RIL’s notable acquisitions include Britain’s iconic Stoke Park, Hamley, and US-based Mimosa Network. These acquisitions are significant moves into diverse industries, from luxury resorts to iconic toy stores and communication equipment makers.
2. Tax Liabilities and GST:
- Companies are obligated to file statements containing financial details of subsidiaries and associates. According to the latest filings by RIL under Form AOC-I, specific information about the cost of acquisition for these entities is not available. The filing also mentions that there is no tax, including GST, on purchasers during the acquisition of a company or its shares.
3. Details of Acquisitions in the Last Five Years:
- RIL, as per its AOC-I filings on the MCA 21 Portal, discloses that it has a total of 255 subsidiaries by the end of FY 2022-23. Out of these, 219 subsidiaries were acquired during the last five fiscal years, spanning from FY 2018-19 to FY 2022-23. The AOC-I form provides specific details about these acquisitions.
Conclusion: Reliance Industries Ltd.’s acquisitions of foreign assets, including Stoke Park, Hamley, and Mimosa Network, demonstrate the company’s strategic diversification. The tax liabilities, including GST, are not explicitly disclosed in the latest filings. However, the regulatory requirement of filing AOC-I forms ensures transparency about the financial details of subsidiaries. RIL’s continuous expansion through acquisitions reflects its commitment to exploring opportunities across various industries, contributing to its global presence and business growth.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UN-STARRED QUESTION NO. 1100
ANSWERED ON- 12/12/2023
LIABILITIES OF GST ON ACQUIRING FOREIGN ASSETS
- SHRI RAJMANI PATEL:
Will the Minister of FINANCE be pleased to state
(a) Whether it is a fact that Reliance Industries Ltd.(RIL) has acquired Britain’s Iconic Country Club and Luxury Resort Stoke Park for about 592 crore, British’s iconic toy store Hamley for 220 crore and US-based communication equipment maker Mimosa Network for ₹ 300 crore;
(b) if so, the tax liabilities worked out by shell companies of RIL and paid to the Government including GST on the entire purchase amount; and
(c) the complete details of acquisition by RIL and its subsidiary companies during the last five years?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) Companies are required to file a statement containing salient features of financial statements of subsidiaries/ associates/ Joint Ventures as per Companies Act, 2013 in Form AOC-I, on the MCA-21 portal. As per latest filings made by RIL under AOC-I, the information about cost of acquisition of these entities is not available. Details of companies with the name of Hamley are shown at S. No. 60-63 and that of Stokes Park at Sl. No. 236 of the AOC-I form filed by RIL for 2022-23. The name Mimosa Network does not appear in this AOC-I Form.
(b) There is no tax including GST on the purchasers on purchase of company or its shares.
(c) As per AOC-1 filed by RIL on MCA 21 Portal, it has a total of 255 subsidiaries at the end of FY 2022-23. 219 have been shown as acquired during the last 5 years (FY 2018-19 to FY 2022-23).
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