Can TDS of partners be claimed by partnership firm

Hi,

This query comes out of the tax planning - conversion of proprietory business into partnership business

FACT - Two persons carrying the business of civil contract decided, at the end of year, to bring their individual business   under partneship firm. They inserted a clause in the deed - "in case partners carry the business of the same nature of firm's business, then the business of partners shall be considered as the business of firm."

By virtue of this clause, the civil contract business carried by partners were considered as the business of firm.

Query    -   Shall assessing officer consider the business of  partners as the business of firm, if yes, shall the tax credit appearing in the partners PAN be transferred to the PAN of firm     

Replies (10)

Hi,

Tax credit appearing in the partners PAN wont be transferred to PAN of the firm. Partner will claim such credit in their individual return.

wait for others reply.

I will Updating it soon..............................

hi my friend,

A.O. could not consider partner business as firm's business during previous year as two persons bring partnership clause at the end of the year.

could not transfer tax credit to firm

HaPpY NaVaRaTri

no, as per IT Act, the partner is a different assessee and a firmis diff. assessee, therefore, not allowed

NO, TDS OF PARTNERS CAN NOT BE CLAIMED BY PARTNERSHIP FIRM.ANY CLAUSE CAN NOT BE GIVEN IN PARTNERSHIP DEED WITH RETROSPECTIVE EFFECT.

agree with Mukul...

No TDS of partners can not be transfered in any situation.

Originally posted by : Madan mohan Das

Hi,
This query comes out of the tax planning - conversion of proprietory business into partnership business
FACT - Two persons carrying the business of civil contract decided, at the end of year, to bring their individual business   under partneship firm. They inserted a clause in the deed - "in case partners carry the business of the same nature of firm's business, then the business of partners shall be considered as the business of firm."
By virtue of this clause, the civil contract business carried by partners were considered as the business of firm.

- the partnership deed made at end of year, can not consolidate the projects already in position of individuals prior to the date of deed.


Query    -   Shall assessing officer consider the business of  partners as the business of firm, if yes, shall the tax credit appearing in the partners PAN be transferred to the PAN of firm     

- TDS is a PAN based depsit of taxes, and non transferable

cant transfered as status of both assesse are different.

No if the status is same for both the assessee is same thereafter also it can not be transferable.

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