Firm and company are merger
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 September 2012
hello sir one of my question is, one propraiter firm are merger in pvt ltd company so whice rate sale by propraiter persion his stock sales to pvt ltd to market value or aquesition value or stock value which rate sales
CA Ayush Agarwal
(Expert)
15 September 2012
onversion of Firm into Company – No capital Gain Tax
When a firm is being converted into a company and the firm transfers its capital assets (whether tangible or intangible) to the company, such transfers will not be charged to capital gains tax if the following conditions are satisfied:
All the assets and liabilities of the firm immediately before its succession should become the assets and liabilities of the company.
prop. of the firm immediately before its succession becomes the shareholders of the company
prop. of the firm do not receive any consideration or benefits (whether direct or indirect) other than the shares allotted to them by the company.
the prop. aggregate shareholding in the company is not less than 50 % of the total voting powers in the company and their shareholding should continue to remain so for a period of 5 years from the date of succession.
When a firm is being converted into a company and the firm transfers its capital assets (whether tangible or intangible) to the company, such transfers will not be charged to capital gains tax if the following conditions are satisfied:
All the assets and liabilities of the firm immediately before its succession should become the assets and liabilities of the company.
prop. of the firm immediately before its succession becomes the shareholders of the company
prop. of the firm do not receive any consideration or benefits (whether direct or indirect) other than the shares allotted to them by the company.
the prop. aggregate shareholding in the company is not less than 50 % of the total voting powers in the company and their shareholding should continue to remain so for a period of 5 years from the date of succession.
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