Capital assets transfer from proprietary to limited company

Dear All,

I am Having Propriety Firm which is purely Export Oriented (STPI Registered) till last Financial Year. Due to STPI Exemption Over I close down that Firm & In that Form I have Some Fixed Assets.

Aqua guard	5973.80
Fax Machine	2565.00
Paper Shedder	1846.60
Air Cinditionner	68756.00
Chairs	43441.00
Computers	4285.00
Office Furniture	673198.00
Office Premises	1557739.00
Grand Total	800065.40

I want to Transfer these all assets to my Limited Company where I am 97% stake Holder.

So how can I transfer these Assets to Limited Company?

Make Journal Entry in Proprietary Firm & same in Limited as Capital
I need to make Invoice in Proprietary Firm to Company, pay the Invoice amount from Limited Company.

If case two is ok then whether need to liable for VAT Registration

In order to close all Fixed Assets in proprietary firm you have to make the following Journal Entry :

Realisation A/c Dr.

To All Fixed Assets A/c ( Individually )

Comany A/c Dr.

To Relisation A/c

If there is any profit on relisation i.e. Purchase consideration is more than the value of asset than

Realisation A/c Dr.

To Capital A/c

otherwise reverse the entry

For making final payment

Capital A/c Dr.

To Equity shares in company A/c

For closing the company and Equity shares in company A/c

Equity shares in company A/c

To Company A/c

here it's the end to the journal entries to proprietary firm

For Company point of view

All Fixed Assets A/c Dr.

Goodwill A/c Dr. (For excess payment than value of assets)

To Business Purchase A/c (with purchase consideration)

To Capital Reserve A/c (for less payment than value of assets)

Business Purchase A/c dr.

To Equity Share Capital a/c (Being equity shares alloted in consideration of assets)

However all these entries will fulfill your first requirement, however for your second question, i think there is a tax implication because you are the 97% Stakeholder in that company and after transferring the assets for gettting the consideration you are still the owner for these assets.

Wait for others suggestions ....