Tax liability: partnership firm converted into pvt. ltd. co.
This query is : Resolved
Rahul Agarwal
(Querist)
24 September 2012
A Partner ship firm was converted in to Pvt. Ltd. Co. on 04.04.2011with its all assets and liabilities and the partnership firm was discontinued on that date.
The firm was having Rs. 30,00,000 as Income Tax provision for F.Y.. 2010-11 which was carried in the opening balance sheet of Pvt. Ltd. But the actual tax liability for F.Y. 10-11 comes to 41,00,000. which was paid by Pvt. ltd co. out of which 30,00,000 was adjusted through provision a/c.
Now, 1)how the Remaning 11,00,000 should be treated in the books of Pvt. ltd.co. 2)Whether that will be charged to P&L a/c in F.Y. 11-12. of the Pvt. Ltd. as the same was paid by them. 3) Whether that amount will be allowable under I.Tax act for F.Y. 11-12. or what else will be the treatment of the same.
Please give your opinion . Thanks in advance.
The firm was having Rs. 30,00,000 as Income Tax provision for F.Y.. 2010-11 which was carried in the opening balance sheet of Pvt. Ltd. But the actual tax liability for F.Y. 10-11 comes to 41,00,000. which was paid by Pvt. ltd co. out of which 30,00,000 was adjusted through provision a/c.
Now, 1)how the Remaning 11,00,000 should be treated in the books of Pvt. ltd.co. 2)Whether that will be charged to P&L a/c in F.Y. 11-12. of the Pvt. Ltd. as the same was paid by them. 3) Whether that amount will be allowable under I.Tax act for F.Y. 11-12. or what else will be the treatment of the same.
Please give your opinion . Thanks in advance.
Soumitra Basu
(Expert)
25 September 2012
SINCE THIS IS THE LIABILITY OF THE ERSTWHILE PARTNERSHIP FIRM, THE IMPUGNED AMOUNT SHOULD BE RECOVERED FROM THE ERSTWHILE PARTNERS.
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
