Conversion of pvt ltd co. to llp -tax effect

This query is : Open

SAMIR SHAH (Querist)
Follow

05 January 2014 a pvt ltd co having a paid up capital of Rs.1 lacs and reserves & surplus of Rs.5 lacs wants to convert itself into LLP. PLEASE DO GUIDE ON THE TAX EFFECT.

WHAT WILL HAPPEN TO RESERVES AND SURPLUS. WILL ON THE CONVERSION TO LLP THE PARTNERS WOULD BE ALLOWED TO WITHDRAW IT. IS THERE ANY TAX LIKE IN FOR CO. FOR BUYBACK OF SHARES.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 January 2014 There may be no tax incidence on the company in case the conversion takes place in accordance with clause (xiiib) of Section 47 of the Income Tax Act, 1961.
.
Reserves and surplus can not be withdrawn within three years from conversion. The amount of R&S can be credited to the partners capital account in proportion to their shareholding in the company.
.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

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

Chaitanya Voolla

MEHUL M. KEVAT

K.S. ANANTHARAJAN

v.rama krishna

DEEPAK BHARGAVA

Subscribe Now

Conversion of pvt ltd co. to llp -tax effect

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

Article Assistant

Manager- Finance and Compliance

GST CONSULTANT

Accountant

CA Final