Dear Members and colleuges,
I m having query relating to tax effect on goodwill..
Starting with an example- There is a partnership firm having its net worth Rs. 10 Lacs and now firm is selling its networth to company named XYZ ltd. at Rs. 12 Lacs.
Now the difference of Rs. 2 Lacs would be goodwill of partnership firm.
My question is will tax would be charged to partnership firm on receiving Rs. 2 Lacs and whether any As will apply for the same...??
Thanks in advance.
Regards
Palak
CAclubindia
