Transfer of running business.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 December 2011
i want to know what are the various alternatives available for transferring a running proprietorship business to the spouse of the businessman. and what will be the tax implication of the same?
03 December 2011
It depends upon the size of the organisation. However, if it's a small concern, it is better that the owning spouse should discharge his loan liabilities as well as other current liabilities. If it is required new loans may be taken in the new firm.
.
Purchases may be started in the new prop. firm from the cut off date.
.
The new firm can acquire the debtors, if could not be received by the present Prop.
.
Stock may be transferred at current Fair market Price in the whole sale market.
.
For Capital Assets like land & Building etc, necessary agreements/ rent deed /sale
deed etc are to be entered into in case so desired.
.
For Depreciable assets also sale price has to be decided for transferring these to the new concern.
.
There may be alternative schemes also.
.
Purchases may be started in the new prop. firm from the cut off date.
.
The new firm can acquire the debtors, if could not be received by the present Prop.
.
Stock may be transferred at current Fair market Price in the whole sale market.
.
For Capital Assets like land & Building etc, necessary agreements/ rent deed /sale
deed etc are to be entered into in case so desired.
.
For Depreciable assets also sale price has to be decided for transferring these to the new concern.
.
There may be alternative schemes also.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Relief u/s Section 89
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
