TRANSFER/MERGER OF ONE LLP WITH ANOTHER LLP

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This discussion examines the capital gains tax implications of transferring or merging one LLP with another, particularly when the designated partners are identical but other partners differ. The consensus suggests that if the partners are the same, capital gains tax is not applicable. However, clarification is sought regarding the tax impact when designated partners are the same but other partners are different, along with relevant legal provisions.

RAJESH KUMAR

RAJESH KUMAR (Querist)

05 August 2021 WHETHER TRANSFER OR MERGER OF ONE LLP TO ANOTHER LLP BE CONSIDERED AS TRANSFER FOR THE PURPOSE OF CAPITAL GAIN IF PARTNERS ARE SAME IN BOTH THE LLP'S

THANKS IN ADVANCE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 August 2021 As partners are the same capital gains tax not applicable on such merger.

RAJESH KUMAR

RAJESH KUMAR (Querist)

06 August 2021 Thank you sir,
Actually in my query designated partners are same in both the LLP and other partners are different,
Will there be any changes in the tax implication
Also please quote the relevant provision you are referring to.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 August 2021 See the link for more clarity.

https://www.google.com/amp/s/taxguru.in/corporate-law/framework-restructuring-limited-liability-partnership.html%3famp

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