Taxation in case of takeover of partnership firm into compan
This query is : Resolved
21 December 2012
Dear Sir/ Madam,
I am working with a company which is a partnership firm and they incorporated a pvt ltd company both are in delhi. now they want to merge both company and the firm. so can any body tell me how they can do that, under which section and what will be the tax effect
I am working with a company which is a partnership firm and they incorporated a pvt ltd company both are in delhi. now they want to merge both company and the firm. so can any body tell me how they can do that, under which section and what will be the tax effect
Yogesh Agarwal
(Expert)
21 December 2012
In case of the succession of the firm by a company and 100% assets and liability of the firm is taken over by the company and the partners of the firm become shareholders of the company in the same ratio as they have in partnership.. no tax under Income Tax Act shall be levied...as the same shall not be regarded as transfer...
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22 December 2012
Thanks yogesh,
Now i want to know whether your answer is relevant in case both Firm and Company which are to me takenover, are running parellaly for 1 year.
Now i want to know whether your answer is relevant in case both Firm and Company which are to me takenover, are running parellaly for 1 year.
Yogesh Agarwal
(Expert)
22 December 2012
My answer is based on the assumption that it is a takeover of 100% not partial. Then parallel running of business not possible...
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