Corporate restructuring

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Shraddha Shukla

Corporate law Consultant

165 Points Posted on 23 July 2012

Hi all,

A company owns two flats and some has outstsnding advances in its balance sheet. now the company wants to trnsfer these to 2nd company, which will be a project management comany.

What is the best way to do this.

1. demerger of the company

2. slump sale or something else.

Plese advice keeping tax liability and stamp duty in mind ........

Replies (2)

sangram ghatge

company secretary in practice

212 Points Posted on 23 July 2012

hi shraddha,

if the company is transfering all its assets, then transfer its ownership by transfering all the shares to other company.

else,

if valuation of flats is too high and huge stamp duty is involved, u can go for demerger.

if cost of stamp duty is less than demerger, then go for slump sale.

about capital gains tax: u can calculate the sale consideration in such a way that no tax needs to be paid.

regds,

sangram 9422622828.

Shraddha Shukla

Corporate law Consultant

165 Points Posted on 31 July 2012

thanks sangam,

The value of flats is 30 lacs but the problem is there is an amount of 3 crores standing in the balance sheet as advances against property under loans and advances in the asset side and we want to transfer that in the the second company..........

the company is pvt ltd...

any suggestions??????