30 July 2007
A proprietorship firm have acquired a plot of land The proprietor of the firm is HUF now the karta of the firm wishes to form a company whether such plot of land can be registered in the name of the company the agreement of sale exists in the name of the proprietorship firm only registration process is pending whether registration can be in the name of pvt ltd company whether Income tax attracts to proprietor please reply with relevant section with case laws
19 August 2007
The agreement for sale may contain a clause that ultimate sale deed can be executed in the name of nominee of a buyer. Whether your agreement for sale contains this clause????
Alternaively , if the seller agrees agreement for sale may be mutually cancelled....and sale deed may be registered in the name of company.......then the tax liabilities issue will not arise.
CAclubindia
