10 December 2011
My client is a private limited company. The balance sheet of the company is as under.
Share Capital 100 F.D. & Cash 1100 a Share Premium 1000 _ The company has only interest income. Now the directors want to convert the company into registered firm at book value.
All the directors will be partners in the registered firm in the same profit sharing ratio. There will not be any change in the
partners and their profit sharing ratio for next five years.
Please note that provision of section. 47 (Xiib) is applicable to the conversion of company into LLP only.
Please enlighten me about the tax obligation regarding the conversion into firm.
Please reply me at my email address. aniladvocate3@gmail.com
Thanking You,
Yours Faithfully.
Guest
Guest
(Expert)
10 December 2011
To my mind, company can not be converted into firm.
CAclubindia
