Part 1 company chapter xxi



HI ALL,

We are registered under LLP Act.  Recently, we converted ourselves in to Pvt Ltd Comp - Part I (chapter XXI).  We have our factory land bought under registered sale deed in Karnataka.  Our bankers say we have affect change of name from LLP to Pvt Ltd in Sub registrar's records(EC), and subsequenrly change khatha. All the three partners od LLP are directors of Pvt Ltd Com along with four new share holders.  Now, my question is:

1) Is this not the case where "no sale, no consideration, a mere restructure of consititution of firm.  Hence, is it not vesting of property automatic being statutory and no registered transfer is necessary?

2) If it is necessary to transfer by conveyance, is it exempted from stamp duty and i8f yes, under what provision it is exempted?

Please help.

Thanks, Regards

shiva PRAKASH

UBI'S CANNERY LLP

 

 
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ideally its changing one form of entity into another.  Conveyance should not be attracted in support of case of tax spin and unicorn.  However, recently in tax case the ruling has been reversed.  Practically, stamp authorities need to be approached and even if there is a name change we need to explain the transaction.  In one of the case i handled, stamp authorities gave exemption 

 
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