Conversion of proprietary into partnership
This query is : Resolved
MOHIT KUMAR TOMAR
(Querist)
14 September 2018
What are the Tax implications on Conversion of Proprietary Business into Partnership of the same Proprietor?
Facts:- Mr.Mohit Kumar is the Proprietor of Mohit Construction Co. and now he is converting his Proprietor business into Mohit Construction Co., as a partner along with his Son Rahul with a capital Introduction of Rs 75000 and RS25000 Respectively.
PSR is 50:50.
Facts:- Mr.Mohit Kumar is the Proprietor of Mohit Construction Co. and now he is converting his Proprietor business into Mohit Construction Co., as a partner along with his Son Rahul with a capital Introduction of Rs 75000 and RS25000 Respectively.
PSR is 50:50.
Mahesh Paryani
(Expert)
14 September 2018
As per income tax the asset transferred would be chargeable to tax, section 45 read with section 48. As per GST Act you can refer to schedule 2 clause 4a and 4c if the proprietor still continues to do business under proprietorship then it would be chargeable to tax if he ceases to be taxable then It is not liable.
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