Tax implication for this partnership firm will be??

 

An Assessee has a partnership concern which does not executes any transaction round the year from last 3-4 years and has a office premises which got depriciation till the day, concern had transactions. From two years the office premises of the concern is been used by a private limited company(sister concern) for its daily working.
The query is that the Assessee wants the office premises of the Partnership Concern to be the Official premises of the PVT. LTD. Company. How do the assessee do that?? so that the partnership also closes and the office premises is taken over ?? Or only the premises is taken over without TAX LIABLITY?? What will be its consequences???
 
 
PLZ REPLY AS SOON AS POSSIBLE.. ITS URGENT!! 
 
Replies (4)

Possible method can be.

Dissolve the Partnership and transfer the Premises to Partners.
 

Now Pvt Ltd Co. will have to take the premises on rent from Partners.
 

 

partnership firms has mandatary audit and return filing, if the firm has done so, then firm can issue rent receipts to pvt ltd company.( subject to their power of letting out , as the ownership of office is not mentioned), and can account the rent received in partnership firm.

Another way suggested by U S Sharma sir is also correct.

 

want to correct you sir that partnership firms have mandatory returns but not mandatory audits.

thanks for the reply..

..

.. the partner is also a a stake holder in the private limited compny to which the office is given for use...

he wants the asset removed from the balance sheet of the concern..?? he wants to transfer the asset without any tax liablity?? will dissolution as suggested by Mr. Shashi do the work??

partnership has no transactions.. will the second method suggested will not attract taxation??

 

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