joint venture
This query is : Resolved
Ca. Alok Gupta
(Querist)
27 February 2008
if A Pvt Ltd having land (stock in trade)and it is going to joint venture with B Pvt Ltd for development of land.
A pvt ltd is want to transfer of land in joint venture company at increased value.
Is there any way to saving Income Tax & Stamp Duty ?
A pvt ltd is want to transfer of land in joint venture company at increased value.
Is there any way to saving Income Tax & Stamp Duty ?
27 February 2008
TRANSFER OF ASSETS BY A HOLDING COMPANY TO ITS WHOLLY OWNED SUBSIDIARY OR VICE VERSA WILL NOT ATTRACT CAPITAL GAINS TAX UNDER SEC 47iv/v.(subject to exceptions stated there in).
OR ELSE, IF YOU TRANSFER land at INDEXED VALUE (of ORIGINAL COST), THE TAX INCIDENCE WILL BE minimum/ LOW.
THE TIME TAKING ROUTE( WHERE YOU AVOID BOTH TAX AND STAMP DUTY) IS MERGER OR AMALGAMATION, THROUGH HIGH COURT.
did you try power of attorney agreement of transfer. you can get away with a lumpsum fees payment instead of stamp duty at respective states rates.
ALSO I KNOW CASES WHERE LAND FROM OWNER TO DEVELOPER IS TRANSFERRED AT COST TO PURCHASER WITH A PROMISE OF FUTURE SHARE OF PROFIT (AFTER DEVELOPMENT) TO LAND OWNER ( WHICH OF COURSE IS TAXABLE AS AND WHEN IT IS RECEIVED IN A PRE AGREED SHARE)
R.V.RAO
TRANSFER OF ASSETS BY A HOLDING COMPANY TO ITS WHOLLY OWNED SUBSIDIARY OR VICE VERSA WILL NOT ATTRACT CAPITAL GAINS TAX UNDER SEC 47iv/v.(subject to exceptions stated there in).
OR ELSE, IF YOU TRANSFER land at INDEXED VALUE (of ORIGINAL COST), THE TAX INCIDENCE WILL BE minimum/ LOW.
THE TIME TAKING ROUTE( WHERE YOU AVOID BOTH TAX AND STAMP DUTY) IS MERGER OR AMALGAMATION, THROUGH HIGH COURT.
did you try power of attorney agreement of transfer. you can get away with a lumpsum fees payment instead of stamp duty at respective states rates.
ALSO I KNOW CASES WHERE LAND FROM OWNER TO DEVELOPER IS TRANSFERRED AT COST TO PURCHASER WITH A PROMISE OF FUTURE SHARE OF PROFIT (AFTER DEVELOPMENT) TO LAND OWNER ( WHICH OF COURSE IS TAXABLE AS AND WHEN IT IS RECEIVED IN A PRE AGREED SHARE)
R.V.RAO
Ca. Alok Gupta
(Querist)
28 February 2008
Mr. Rao pls give any case reference if do you have
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