Dear All
my query is
1. Mr. A & Mr. B owns a plot of land (since 1994)
2. Mr. A & Mr. B along with Mr. C forms a pvt ltd co. ABC pvt Ltd.
3. ABC Pvt Ltd. constructs the structure on the above said plot of land (note : there is not tr of land in companies balance seet.)
4. All out goings for construction are from the accounts of Company. (cc in 2009)
5. Company has raised funds from Mr. A ,as and by way of unsecured loan.
6. Stucture and plot both are in the name of Mr.A & Mr.B in the records of rights.
7.Mr. A Wants to sell the plot and structue?
1 What are the way out to him ?
2. What will be company's status in the whole state of affairs? (as all the funds are routed through the company) - can comany raise a bill for exp + supervision chargres to mr A & B ? if yes
can company distribute its profit by way of directors remunaration ( i think there is no limit specified to private limited company)
3. To save or minimise the capital gain (LTCG / STCG)what you all will suggest?
Can we treat Sale of land as LTCG and Sale of Structure as STCG in the hands of Mr. A & Mr. B
4.Whether it is necessary to make the Company as a consenting party to the transaction ?
or
any other mode to complete the transaction as hastle free transaction.
CAclubindia
