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.
CA Tilak Raj Sharma
(Expert)
06 December 2008
No, set off is not allowed.
Nilesh Shah
(Expert)
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
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