Payment to retiring partner
This query is : Resolved
CA Maulik Bagdai
(Querist)
11 June 2014
Retiring partner takes part of the stock of the firm on settlement...
Will this be taxed in the hands of Firm or Partner...???
Will this be taxed in the hands of Firm or Partner...???
Sandeep Dharar
(Expert)
11 June 2014
It will b Taxable in the hands of the Partner individually, n not in Firm
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CA Maulik Bagdai
(Querist)
11 June 2014
Thank you sir for your response...
Would like to know under which section it will be taxable in the hands of the partner..?? As it is as good as parnter widhdrawing the capital...
And if the partner is taking stock then whether any Local taxes like VAT to be levied on that..??
Would like to know under which section it will be taxable in the hands of the partner..?? As it is as good as parnter widhdrawing the capital...
And if the partner is taking stock then whether any Local taxes like VAT to be levied on that..??
CA UMESH DULAL
(Expert)
11 June 2014
Share of profit is not taxable in the hand of partner. It is exempted as it is already tax in the hand of partnership firm
CA UMESH DULAL
(Expert)
11 June 2014
local vat is applicable
CA Maulik Bagdai
(Querist)
11 June 2014
Sir, partner is retiring and he is taking stock for settlement... Wanted clarification on taxability on that...
CA UMESH DULAL
(Expert)
11 June 2014
not taxable in the hand of partner as it is capital receipt
in case of firm, amount outstanding on the capital of the partner shall be taken the vale of sale consideration. as the partner is taking stock, treat as normal sale transaction
in case of firm, amount outstanding on the capital of the partner shall be taken the vale of sale consideration. as the partner is taking stock, treat as normal sale transaction
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