Requirement for conversion of sole proprietorship to Pvt. L

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 Hello All,

I am going to convert sole propritorship to Pvt. Ltd. Co.,Please answer the following questions :
1. Will Excise, VAT, CST, Service Tax and PAN registration number will remain same same sole proprietor or new registration need to be taken?
2. It has been researched that on transfer of asset from proprietorship concern to Pvt. Ltd. Company, if some conditions under I.T. Act are satisfied then it shall not attract Tax. Is it correct? If no, then please clarify.
3. It has been researched that pvt. ltd. company which is going to form newly has to mention in its object clause "to takeover sole proprietorship concern". Is it correct? If no, then please clarify.

Any other additional information is invited.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 July 2011 Q.1 - You are forming a New Company and hence every registration including PAN is to be taken a fresh.

Q2. Nothing is there in the I. Tax act in this regard. Clarify what you want to know.

Q3. Yes you have to mention in the MA

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 Hi,
Thanks for Info. We want to know when we convert Proprietor concern to Pvt ltd Company (merger), whether
1. Excise Registration
2. Service tax Registration
3. PAN card
4.SSI Registration
5. VAT Registration have to be changed and whether new registration is required or they will issue new ?

Also, to avoid any capital gain tax in Income tax, what process is required to be followed?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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15 July 2011 Check section 47(xiv) of income tax act to know about the conditions to be fulfilled to get an exemption from paying capital gains on transfer of assets by a proprietorship concern to a pvt ltd company.