Above transactions not treated as transfer subject to some condition. One of condition is
Shareholders of companies become partners in LLP and reserves in company become reserve of LLP.
Such reserve not to transfer those partners who are shareholders of company for 3 years from transfer.
Why is that and what's the problem for sharing such reserves to those partner who are earlier shareholders.
Menu
conversation of companies into LLP
Replies (1)
Mr. Prasad Malvadkar,
If it is allowed to share accumulated profits of the company ( Pvt. co. and Unlisted public company in this case u/s 47(xiiib) ).
Private co. will covert into LLP and share the profits and will be able to avoid DDT or CDT.
That is why this condition has been impised.
Hope this will meet your requirement.
Regards.
If it is allowed to share accumulated profits of the company ( Pvt. co. and Unlisted public company in this case u/s 47(xiiib) ).
Private co. will covert into LLP and share the profits and will be able to avoid DDT or CDT.
That is why this condition has been impised.
Hope this will meet your requirement.
Regards.
Recent Topic
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
- Gold/silver etf. STCG. how to decalre in ITR at s
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
- What's the ONE thing about GSTR-2B / IMS reconcili
Related Topics
CAclubindia
