Transfer of immovable property

sonal (student) (21 Points)

04 October 2017  

A partnership wants to transfer some of it's plant and machinery, WDV 70L, to a third party. The P&M has a correspondingloan of 20L. So, the firm plans to transfer both the P&M and Loan along with it to the third party. No other consideration will be paid by the third party. How can this be adjusted in the books of partnership firm to avoid tax liability. Also, waht will be the tax liability in the hands of the 3rd party who's a newly incorporated Proprietorship firm.