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Transfer of Assets

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This query is : Resolved

Mohd Sarfaraz Latibani (Querist)
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15 December 2008 I am having a Software Co. and I am opening a new proprietor ship firm so the assets of Software company will be used in the new firm and the software company will get closed. I want to know how to transfer the assets from one company to other.

Thanks.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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15 December 2008 First of all clarify that you had a private Limited Company. If this is the case then there Capital Gain provisions will be applicable.

if the old business is also under proprietorship then you dont need to worry because you are sole prop. in both cases.

Please clarfy.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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15 December 2008 Just debit the cost of such softwares in the proprietory firm going to be closed and get the same credited in the books of new Prop. firm by giving a corresponding debit to the Asset head of Softwares. However, the same is only a transfer of assets from one business to another and no profit or loss accrues on this account.

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