Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Takeover of firm by company

MCA 169 views 2 replies

abdulqadir

72 Points Joined August 2009

I want to know while partnership firm is takeover whether firms identity is lost and it will be called as company

or firm will still be there and just its accounts will be consolidated with company

2) firm has some losses which needs to carried forward whether it is advisable to takover ?

3) does anyone have checklist for what all procedure need to be followed?

thanks

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

yes firms identify is no more ad it gets merged with the company. Al. the assets/liabilities of the firm get transferred to the co at agreed values.
if any losses are there these will get transferred to the the co and the co will get tax benefit for c/f if losses transferred. similarly if any GST ITC is remaining the same will get transferred to the co