chirag (student) (186 Points)
01 December 2014If a private limited company transfers plant & machinery to a proprietorship concern without consideration, than what are the implications of capital gain in the hands of private limited company?
Gagan Deep Singh
(CHARTERED ACCOUNTANT)
(1190 Points)
Replied 02 December 2014
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47.
Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M.
Gagan Deep Singh
(CHARTERED ACCOUNTANT)
(1190 Points)
Replied 02 December 2014
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47.
Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M.
Spirit
(Learner)
(450 Points)
Replied 02 December 2014
| Originally posted by : Gagan Deep Singh | ||
 |
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47. Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M. |
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Alok A Bhavsar
(CA Final Student)
(82 Points)
Replied 07 December 2014
If there is only one P&M in block then the block become zero and balance will be teated as short term capital loss. Otherwise agreed with Gagan Deep Singh
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