conversion of firm into a company and tax credit
This query is : Resolved
06 December 2008
A partnership firm is converted in to a private limited company in february. It had paid advance tax for income tax and FBT. It has filed separate returns for firm and company. The firm has refund of Rs. 8 lacs and the company has tax liability of 11 lacs. Can company get set off for 8 lacs against 11 lacs? Under which section?
06 December 2008
No set off is allowed.
06 December 2008
No, set off is not allowed.
07 December 2008
Nilesh Shah Writes:
E mail: nilesh63@vsnl.com
The firm and the company are two seperate entities. No set off by an assessee is permissible even for the same entity.An assessee does not have a right to set off. Under section 245, it is only the Dept which has the right to set off (but of the same entity). The assessee does not have any such right. On the refund assessee can claim interest and on the short fall the assessee has to pay interest.
Sincerely,
Nilesh Shah
E mail: nilesh63@vsnl.com
The firm and the company are two seperate entities. No set off by an assessee is permissible even for the same entity.An assessee does not have a right to set off. Under section 245, it is only the Dept which has the right to set off (but of the same entity). The assessee does not have any such right. On the refund assessee can claim interest and on the short fall the assessee has to pay interest.
Sincerely,
Nilesh Shah
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- NRI starting business in India
- Difference between Date of Payment and Date of Deduction?
- Journal entry of busniess expenses
- GST not cancelled by tenant
- FORM 141 SDV query
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Cash balance limit and property purchases limit
- Taxable or Tax exempt
- How to pay remaining amount of TDS after due date?
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
