Transfer of Asset.

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CA.Yogesh Patel (Querist)

02 March 2011 If a Pvt. Ltd. company having only three members which has purchased land say for Rs.1 crore.

Now if all the three members transfer their share to another menbers say for nominal consideration then what will be the consequnce?

Kindly suggest.

thanks.

Jayashree S Iyer

Jayashree S Iyer (Expert)

03 March 2011 The property acquired by the private limited company will be the property of the company and not the members. Hence even after transfer of shares by members, the land will continue to be the property of the private limited company.

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CA.Yogesh Patel

CA.Yogesh Patel (Querist)

03 March 2011 Thanks,
But I am not clear about the tax effect and stamp duty liabilities.

Can u please explain elaborately.

Thanks

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

09 March 2011 stamp duty will not be involved in case of land but shall be involved only for the shares so transferred.

Also kindly remember sec 56 of Income Tax Act which provides for valuation of shares being transferred.There in there shall be tax liabillity if the value of shares is less than the value so determined u/s 56.

Anuj
9810106211

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