25 December 2014
I running a pvt ltd co. having stock in trade valued Rs. 2 Crore. now I like to transfer this stock in trade in new partnership firm as as capital contribution. any tax libilities is arise.
25 December 2014
The pvt ltd company is liable for tax on the profits made by it from such transfer and the same can be termed as business income of the company. . If the company transfers the stock at cost, there will be no profit. . Where the amount involved is more than 5 crore rupees, implications of provisions of Section 92BA must be duly considered. .
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