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Sale of partnership firm

SelvaMani A (Partner) (25 Points)

26 August 2016

We are three partners running a partnership firm, last three years, (anesthesia vaporizer manufacturing)now we planed to sale our designs and raw materials to other company and close our firm, for design 50 k, materials 20 k , total 70 k. How to pay tax for that amount, in the name of company , or we share the amount and pay individually.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 26 August 2016

Actually both will be treated as income of the firm.

Still, the design can be planned to treat income in single partner's hand, if required.

SelvaMani A (Partner) (25 Points)
Replied 26 August 2016

Thanks for the reply sir, how to pay tax for that amount sir, in the name of firm , or we share the amount and can Pay individually ? We planned to close that firm.what % tax to be pay?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 26 August 2016

For the raw materials the amount is added to P&L acc of firm, and is taxed at 30% rate, along with other income of the firm.

For design amount either it can be added to the income of the firm as above, or may distribute amoung either or all of 3 individual accounts and pay tax as per slab rate.

There is definitive procedure to dissolve the firm, after paying off all the tax liabilities.