Conversion of partnership firm into llp effect on taxation, pan
This query is : Resolved
10 January 2024
partnership firm is there which are converting into Limited Liability partnership reason is to upgrade entity for marketable point of view.
but question arised , in this change in entity PAN number could have change or not? becasue we need change in PAN as general thinking. is it correct.
also development agreement had executed in firm by paid stamp duty for property development, by conversion fo entity , shall there need to pay again stamp duty as per transfer of property act, registration act and so on.
pls experts opinion . with kind regards.
but question arised , in this change in entity PAN number could have change or not? becasue we need change in PAN as general thinking. is it correct.
also development agreement had executed in firm by paid stamp duty for property development, by conversion fo entity , shall there need to pay again stamp duty as per transfer of property act, registration act and so on.
pls experts opinion . with kind regards.
10 January 2024
New PAN number required.
Conversion of firm into Limited Liability Partnership does not give rise to capital gain since no transfer of asset is involved in conversion. When Partnership Firm is converted into Limited Liability Partnership, all the properties of firm shall vest in the LLP. There is no dissolution of firm. Hence Section 45(1) relating to capital gain is not applicable to the Limited Liability Partnership. Further, as there is no transfer of Asset is involved, requirement of transfer deed is not necessary and hence no stamp duty is payable.
Conversion of firm into Limited Liability Partnership does not give rise to capital gain since no transfer of asset is involved in conversion. When Partnership Firm is converted into Limited Liability Partnership, all the properties of firm shall vest in the LLP. There is no dissolution of firm. Hence Section 45(1) relating to capital gain is not applicable to the Limited Liability Partnership. Further, as there is no transfer of Asset is involved, requirement of transfer deed is not necessary and hence no stamp duty is payable.
Message likes :
1 times
25 January 2024
You are welcome...
...
...
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
