I am having two partnership firms wherein all the partners are common and their profit sharing ratio is also same. I want to merge both the firm into one or that i want one firm to take over all the assets and liabilities of another firm so that the another firm may be closed down. My query is whether any tax effect will arise in such a case? If yes, what should be best model for such an arrangement so that tax liability is reduced to minimum. If possible, kindly guide me about stamp duty implications also.
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Merger of two partnership firms
Replies (4)
Your Case needs a Full fledged detailed discussion. A good advice will depend upon your Balance Sheet Item and the Contractual arrangement that the firms have entered into with 3rd Parties.
The Best way in opinon is Amalgamation. For a PVT LTD Comapny.
When you are planning that one Firm will buy all the assets of the Other Firm, apart from Stamp duty Issues, you should also keep in Mind the Incidence of Capital Gain Tax
Hi
The net assets of partner as per the partnership deed , wiil be the capital inuced by each partner in the partnership firm. Thus no tax implication will arise.
For any other consultancy, kindly PM me or mail me .
AJH & CO.
anubhavjain @ ajhco.in
9868729930
Hi
The net assets of partner as per the partnership deed , wiil be the capital inuced by each partner in the partnership firm. Thus no tax implication will arise.
For any other consultancy, kindly PM me or mail me .
AJH & CO.
anubhavjain @ ajhco.in
9868729930
You will have to reconstitute the surviving firm with a revised deed.
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