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Transfer of Company

Tax planning 519 views 1 replies

Arun Agrawal

Chartered Accountant

35 Points Joined November 2008

Dear Friends,

Kindly guide regarding these query...

Suppose a company is getting change in the management by quiting all the directors and shareholder by introducing new directors and shareholder , it means it is just like a sale of company but the name and address is same.

My question is , if in fixed asset list a land is appearing in the name of company but it is actually directors own land , by mistake he purchased in the name of company and now he want to take his land out " with attracting capital gain ".....

So What he have to do............?

Replies (1)

Rajes

44 Points Joined May 2008

This is my view:

Nothing is done mistaken in case of where finance matter is concerned.

So, if land is in the name of the company and diriector had paid frm his bank. than cost of land will be appear in the company books as the LOANS FROM DIRECTORS and company would pay that amount.

if directors want that land than he has to buy from the company and captial gain wil be applicalbe to company.

Bottom line:

Director should buy the land from the company . and capital gain will be applicable to company.

There are many view where directors can be benefited which can be known through proper consultant.