16 September 2009
MY dear freinds please solve my query supported with the relevant section.
If a properitership concern is transfered to a company, would cap gain will attract & how. Suppose A is a properiter in A trading Co.and he transfered all the assets and liabilities to the company. now company becomes properiter in that A trading co.In consideration shares are issued to him equilant to his capital account as on the date. now comapany is running the business of thatA trading co. as a going concern. would this attract cap gain. if yes than how.
16 September 2009
SIR, THIS IS NOT THE CASE OF DIRECT TRANSFER, THE COMPANY BECOMES SOLE PROP. IN THE EXISTING BUSINESS AND EXISTING PROP. BECOMES LENDER OR CREDITOR.
CAclubindia
