Dissolution of partnership firm

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Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 Taxation of Dissolution of Partnership Firm.
What will be Tax implication of sale of disposal of following assets?

1.Building (WDV) 15 Lakh
2.Plant and Machinery (WDV)19 Lakh

The WDV of Depreciable assets is 48 Lakh.

Is there any effect of Tax implication on Current Assets (Rs 15lakh)& Current Liabilities (Rs. 8 Lakh)?

What is tax implication in the case of Slump sale ?

Kindly provide proper ways to dissolve firm so that minimum tax liability incure?

Amol S Joglekar

Amol S Joglekar (Expert)

24 November 2014 First decide whether you are going to dissolve the firm or make a slump sale. Accordingly the tax implication may be sought for.
If you are dissolving the firm, you are just distributing the assets and liabilities to the partners, that's all. But if you are thinking of selling the asset and then making dissolution.....

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 What is implication of Capital Gains etc.?

Amol S Joglekar

Amol S Joglekar (Expert)

24 November 2014 In case of dissolution,
The profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm shall be chargeable to tax as the income of the firm,of the previous year in which the said transfer takes place and, for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer

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