Takeover of Proprietorship by existing private limited
This query is : Resolved
14 March 2017
want to know the procedure of takeover of proprietorship by existing private limited where proprietor is director of private limited. Proprietorship and private limited doing the same business.
1. Is the stamp duty mandatory?
2. How to save capital gain tax?
3. Type of agreement to be made?
14 March 2017
Please ensure following to save capital gains :
- Private limited company will do same business as done by proprietorship.
- Proprietor should not get anything other than shares of private limited company.
- Proprietor should hold more than 50 % shares in company for atleast 3 years.
- all assets and liabilities related to business should be taken over by company.
If above conditions are satisfied then there will be no capital gains tax on conversion of proprietorship into private limited company.
- Private limited company will do same business as done by proprietorship.
- Proprietor should not get anything other than shares of private limited company.
- Proprietor should hold more than 50 % shares in company for atleast 3 years.
- all assets and liabilities related to business should be taken over by company.
If above conditions are satisfied then there will be no capital gains tax on conversion of proprietorship into private limited company.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- EXPORT COMMERCIAL INVOICE HSN CODE
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- GST not cancelled by tenant
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- NRI starting business in India
- Cash balance limit and property purchases limit
- FORM 141 SDV query
- Filling ITR - U
- Form 140 tds
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
