Conversion of partnership firms to company
This query is : Open
29 April 2013
Hi,
I want to convert 2(TWO) Partnership Firms into one Private Limited Company. Please suggest me the effective way out through which i can save the tax on transfer and covert both the firms in one company.
I want to convert 2(TWO) Partnership Firms into one Private Limited Company. Please suggest me the effective way out through which i can save the tax on transfer and covert both the firms in one company.
29 April 2013
The best way is to close partnership firm through retirement of partner by transferring all assets and liabilities in their account.
Once partnership firm is closed than partner in their personal capacity should subscribed share capital of newly formed company and transfer all this liabilities and assets as a part of Pre-operative contract which shall be approved by the company in first general meeting and all business will be transferred to business without paying any additional tax liability except for the profit distribution from the partnership firm.
Once partnership firm is closed than partner in their personal capacity should subscribed share capital of newly formed company and transfer all this liabilities and assets as a part of Pre-operative contract which shall be approved by the company in first general meeting and all business will be transferred to business without paying any additional tax liability except for the profit distribution from the partnership firm.
30 April 2013
Thanks Vishrut..But in that case also how would i be able to take care of the provisions of section 47 of the income tax act???
30 April 2013
Dear Parth,
Section 47 only applies when the firm is than over or amalgamated with the company while the option i have suggested will not be in the nature of amalgamation rather same shall be transfer of asset to partner and than introduction of capital assets by shareholder to company.
It will not have any impact on the Applicability of Section 47.
Section 47 only applies when the firm is than over or amalgamated with the company while the option i have suggested will not be in the nature of amalgamation rather same shall be transfer of asset to partner and than introduction of capital assets by shareholder to company.
It will not have any impact on the Applicability of Section 47.
30 April 2013
Thank you very much vishrut...
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Accounting with Claude
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
