Pvt ltd.co and capital gains

This query is : Resolved

Parth Magia (Querist)
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29 December 2012 suppose a Pvt.Ltd.Co. has a property in their balancesheet.

property is being depreciated at 5 % p.a.

now one of the director holding 95 % Shares in the company wants to transfer this property to his personal name at either market price or at an agreed price.

can he do so ? if yes then who will bear the capital gains tax?

and whether Dividend distribution tax shall be payable ?

pls educate me asap,

thanks in adv.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 December 2012 If the person is purchasing property from the company, he can do so provided the terms of Articles of Association and Memorandum of the company allow to do so.
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DDT is not required to be paid by the company.
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Capital Gains Tax will be paid by the company.
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