Section 87. Liability in case of amalgamation or
merger of companies.-
(1) When two or more companies are amalgamated or
merged in pursuance of an order of court or of Tribunal or otherwise and the
order is to take effect from a date earlier to the date of the order and any
two or more of such companies have supplied or received any goods or services
or both to or from each other during the period commencing on the date from
which the order takes effect till the date of the order, then such transactions
of supply and receipt shall be included in the turnover of supply or receipt of
the respective companies and they shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said
order, for the purposes of this Act, the said two or more companies shall be
treated as distinct companies for the period up to the date of the said order
and the registration certificates of the said companies shall be cancelled with
effect from the date of the said order.
