Hi all,
I have one client who converted their partnership firm into Private limited company on 27.03.2012 by taking over the business of partnership firm. The firm had three partners but on formation of a company there are only 2 partners as directors of the company because one of them retired from the business. My concerns are as follows :
1. Should any intimation be sent to the Income tax department as there is income tax refund due to be received in respect of AY 2012-13. What will be the status of that refund? Will refund be received in the name of the company even if not intimated?
2. Should all closing assets and liabilities of partnership firm be shown as opening assets and liabilities of private limited company?
3. Will there be any income tax issues since one of the partners have retired from the firm at the time of conversion into company?
4. Can unabsorbed depreciation and losses of firm be carried forward by company?
5. Is there some filing to be done with registrar of partnership for retirement and takeover of firm by company?
CAclubindia
