Demerger of Partnership firm and tax consequences????
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 December 2010
Hello friendzz
plz solve my problem
there is one partnership firm with 3 partners
it has 3 units each maintaing seperate set of books and have their own assets and liab.
Now it wants to make one of its unit into seperate partnership firm with having same partners with same profit sharing ratio
means one can say that only a unit is converted into seperate patnrship firm rest everytng is same.
Now what will be its tax consequence
will it attract capital gain tax???
and what would b possible tax planning???
thnxx
plz solve my problem
there is one partnership firm with 3 partners
it has 3 units each maintaing seperate set of books and have their own assets and liab.
Now it wants to make one of its unit into seperate partnership firm with having same partners with same profit sharing ratio
means one can say that only a unit is converted into seperate patnrship firm rest everytng is same.
Now what will be its tax consequence
will it attract capital gain tax???
and what would b possible tax planning???
thnxx
Gayathri Devi
(Expert)
28 December 2010
Yes Capital Gain will be attracted to the transfer assets at the prevailing Market Price.
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