Acquire/ take over proprietary firm.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2012
Please tell me how can a private Ltd can acquire/ take over proprietary firm.

Pankaj Gupta

Pankaj Gupta (Expert)
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13 October 2012 Refer sec 47(Xiv).
Fulfill its requirements and then no capital gain will arise on the transfer. And the stock in trade should be transfered at cost or market value whichever is lower. Then no business income will arise on its transfer as per the supreme court decision in sakthi trading company.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2012 I want to know the procedure to be followed by Private limited Company to acquire / take over proprietory firm ?

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Pankaj Gupta

Pankaj Gupta (Expert)
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14 October 2012 Ok I am sorry.... But on that matter you should wait for explanation from any other expert.