conversion of HUF to Pvt. Ltd. Co.

This query is : Open

Rajesh (Querist)
Follow

18 January 2011 What are the steps to be taken by an HUF firm, wants to change its constitution into private limited company.
Which is the best possible way and what are the tax implications.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

18 January 2011 1. In Section 47(xiv) the provisions for conversion of Sole Proprietor ship Concern into Company has been mentioned.
*
2. I am not sure , but of the firm opinion, that the word "Sole" restricts application of this sub-section to individual proprietor ships only.
*
3. In other words I want to say that HUF is not equivalent to "sole" as a "sole" can not form an HUF.
*
4.However in case of Individual Proprietor only following points may be kept in mind -
1. Transfer of all assets & Liabilities to the Company.
2. Not less than 50% unchanged Voting power -of Proprietor upto 5years
3. no other consideration or benefit from Co. to proprietor other than allotment of shares.
then there will be no transfer and such no capital gains will arise.
5. But in case of HUF Proprietor, I invite discussion from our experts.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

Sridhar h s

kambamcr@gmail.com

Pranab Banerjee

Jeegar Valera

Subscribe Now

conversion of HUF to Pvt. Ltd. Co.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA