Mr CK a higly performing busness man doing Trading in name of
proprietership firm, did avg 2 to 3 cr Turnover last 3 yars.
he also formed a pvt ltd co (manufacturing)operational for last 2 yaer but having low turnover of 25-30 lacs.
He is seeking advice to merge properitor & pvt ltd co. to have a big p &l, B/s
Is it possible to merge properitiorshp(trading) & Pvt Ltd.(manufactoring)
what about tax assessment of previous year.
how the lending banker will view this ?
please suggest
Dear Ravi,
I feel the lending Bank will welcome this type of merger because a company operates in a more regulatory framework(i:e Company Law) than a properietorship...
No isuues u can manufacturing company can take over a trading properietory concern...
I would suggest u to fulfill the conditions specified in Sec 47(xiii) so that this entire arrangement becomes TAX neutral..
Rahul Dang & Associates-Chartered Accountants
Pune
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