24 December 2011
Dear Experts, Need your opinion. X a Registered Partnership Firm having 2 partners has an industrial land. The same 2 partners have already floated a pvt ltd company. Now they want to transfer the property (land) into company's name. What is the best options with the Firm without paying much capital gain.
Refer to section 47 the section read as follows Any transfer of capital asset or intangable asset by a firm to a company as a result of succession of the firm by a company in the business carried on by the firm subjected to the following conditions
all assets and liability are transfered
all the members of the firm become the share holder of the company in same proportion
consideration received is not other than by way of shares
aggrigate share holding is more than 50% of the total voting power
only after satisfying all the conditions capital gains would be exempted.
please read the section and apply this will solve your query.
29 December 2011
Since in the given case, Private Limited Company is already floated without succession plan, Section 47 will not apply and therefore transfer of land will attract Capital Gain
CAclubindia
