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A bit complicated: pvt ltd company + partnership

Others 1239 views 6 replies

This is the current set up. Its currently a bit long.

Partnership Firm (Unregistered)

  • Assuming i am person A. I had a partner, lets call him B
  • A and B have started a partnership firm dealing in software (unregistered)
  • Total expenses in partnership firm is 10 lakh.
  • Now this partnership firm is to be dissolved.

Now the same business as above i want to conduct with a NEW partner 'C' opening up a pvt ltd company

C has a shell company for a pvt ltd firm which has made losses in previous years of 20lakhs. This shell company is currently not functioning. I want co carry forward the losses from the partnership frirm. Assuming i enter the new set up as a director, My questions are as below

  1. How do you suggest i carry forward the losses from my partnership firm. Do you think sale of software from partnership firm to pvt ltd firm is ideal. (assuming i show sale of 10lakhs from partnership to pvt ltd company. Hence in this case the books are squared off in the partnership firm)
  2. The Pvt Ltd company has made losses in 2008 and then shut down. Assuming i go this route, will this affect losses the carried forward ie 4 years that have already passed from 2008-2012. So does that mean as a pvt ltd company which i join, ill have only 4 years left to carry forward losses ( i know losses can be carried forward for 8 years)
  3. Do you suggest i set up a new pvt ltd company. If so, then how do i square off the books in the partnership firm?
  4. Any other ideal way you gurus can come up with.

Thanks in advance to one and all

Your suggestions

Replies (6)

Anyone here who can help?

someone pls help in the forums

Hi! Mark.

 

One thing i would like to first ask u that: 

1. Is there has been losses in ur firm which has been dissolved or the losses which u r stating is of the shell private limited company which is of C?

 

2. If ur partnership firm has been dissolved then how can u carry forward the losses. Dissolution means setting off all the liabilities which have been there in books of the firm so after this no forward of losses.

 

U can mail me the query on ashutosh.kcs @ gmail.com

The partnership has NOT been dissolved yet (A+B). Lets assume this companys name is Sapna Internet

Losses have been in (A+B) to the tune of 10lacs

C also has losses from his previous company which he previously ran in 2008 to the tune of 20lacs. Lets assume the companys name is Laxmi pvt ltd.

Now i have two objectives

  1. Carry foward the loss of 5lacs (half of the loss from partnership in Sapna Internet)
  2. Shut down Sapna Internet and carry forward same business in Laxmi Pvt Ltd with a new partner ie C ie reviving old company of C to undertake business

hence my queries are as below

 

  • How do you suggest i carry forward the losses from my partnership firm. Do you think sale of software from partnership firm to pvt ltd firm is ideal. (assuming i show sale of 10lakhs from partnership to pvt ltd company. Hence in this case the books are squared off in the partnership firm)
  • The Pvt Ltd company has made losses in 2008 and then shut down. Assuming i go this route, will this affect losses the carried forward ie 4 years that have already passed from 2008-2012. So does that mean as a pvt ltd company which i join, ill have only 4 years left to carry forward losses ( i know losses can be carried forward for 8 years)
  • Do you suggest i set up a new pvt ltd company. If so, then how do i square off the books in the partnership firm?
  • Any other ideal way you gurus can come up with.

 

 

Originally posted by : CS Ashutosh Kumar


Hi! Mark.

 

One thing i would like to first ask u that: 

1. Is there has been losses in ur firm which has been dissolved or the losses which u r stating is of the shell private limited company which is of C?

 

2. If ur partnership firm has been dissolved then how can u carry forward the losses. Dissolution means setting off all the liabilities which have been there in books of the firm so after this no forward of losses.

 

U can mail me the query on ashutosh.kcs @ gmail.com

Originally posted by : CS Ashutosh Kumar

Hi! Mark.

 

One thing i would like to first ask u that: 

1. Is there has been losses in ur firm which has been dissolved or the losses which u r stating is of the shell private limited company which is of C?

 

2. If ur partnership firm has been dissolved then how can u carry forward the losses. Dissolution means setting off all the liabilities which have been there in books of the firm so after this no forward of losses.

 

U can mail me the query on ashutosh.kcs @ gmail.com

 

 

The partnership has NOT been dissolved yet (A+B). Lets assume this companys name is Sapna Internet

Losses have been in (A+B) to the tune of 10lacs

C also has losses from his previous company which he previously ran in 2008 to the tune of 20lacs. Lets assume the companys name is Laxmi pvt ltd.

Now i have two objectives

  1. Carry foward the loss of 5lacs (half of the loss from partnership in Sapna Internet)
  2. Shut down Sapna Internet and carry forward same business in Laxmi Pvt Ltd with a new partner ie C ie reviving old pvt lyd company of C to undertake business

hence my queries are as below

 

  • How do you suggest i carry forward the losses from my partnership firm. Do you think sale of software from partnership firm to pvt ltd firm is ideal. (assuming i show sale of 10lakhs from partnership to pvt ltd company. Hence in this case the books are squared off in the partnership firm)
  • The Pvt Ltd company has made losses in 2008 and then shut down. Assuming i go this route, will this affect losses the carried forward ie 4 years that have already passed from 2008-2012. So does that mean as a pvt ltd company which i join, ill have only 4 years left to carry forward losses ( i know losses can be carried forward for 8 years)
  • Do you suggest i set up a new pvt ltd company. If so, then how do i square off the books in the partnership firm?
  • Any other ideal way you gurus can come up with.

 

 

 

dear mark,

as ur partnership is not registered, nothing can be done.


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