I have a pvt ltd company which has a turnover of average 10 crore for last 5 years.
i want to convert it to LLP,
Is any capital gain tax on share transfer . all shareholder now partner in LLP.
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LLP TO PVT LTD CO.
Replies (1)
Section 47(xiiib)
Following shall not be regarded as a”transfer” , therefore, no capital shall arise on the following :
1. Any transfer of a capital asset or intangible asset by a private company or unlisted public company to a limited liability partnership
2. Any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008
Following shall not be regarded as a”transfer” , therefore, no capital shall arise on the following :
1. Any transfer of a capital asset or intangible asset by a private company or unlisted public company to a limited liability partnership
2. Any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008
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