Dissolution of a partnership firm

This query is : Resolved

Murlee (Querist)
Follow

14 November 2008 Dear Members,

Please tell me the procedure to dissolve a partnership firm.

I know abt dissolution deed, but what about income tax and sales tax where the firm is registered.

What shall be partners income tax liability on amount received from dissolved firm ?

Firm is established on 01.04.2006 and to be dissolved wef 01.04.2008

Can i made a deed today for dissolution effective from 01.04.2008?

Firm is not registered in ROF (Registrar of Firms)

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
Follow

15 November 2008 Firm will be dissolved by dissolution deed. You need to submit the copy of the deed with Income Tax and Sales Tax departments. You also need to surrender your Sales Tax number. Partners will be taxable U/s 45(4)(Capital Gain) for the amount received on dissolution. It does not matter that the firm was registered with ROF or not because it was already registed with Income Tax and Sales Tax and we have make these treatment.

Message likes : 1 times

Tejpal Sheth

Tejpal Sheth (Expert)
Follow

15 November 2008 i would like to make one suggestion. dissolve firm wef 31.3.2008. Firm is registered or not, on dissolution, notice of dissolution is to be given to public, otherwise liability on partner will cont.

Yes you can make deed of dissolution today having effect from 1.4.2008

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!