Partnership
This query is : Open
08 May 2012
Hello There
Currently we are running Proprietory concern where my father is a sole proprietor. Now we decided to convert this proprietory firm in to a partnership firm where My father, me and my younger brother is a going to be a partners. Now my question is, Does assets in the proprietory firm will attract any stamp duty or taxation while transferring that assets to partnership firm?
Currently we are running Proprietory concern where my father is a sole proprietor. Now we decided to convert this proprietory firm in to a partnership firm where My father, me and my younger brother is a going to be a partners. Now my question is, Does assets in the proprietory firm will attract any stamp duty or taxation while transferring that assets to partnership firm?
08 May 2012
In case of Capital Assets, the amount credited in the firm's books will be treated as sales consideration for the purpose of computation of capital gains.
.
Any profit arising out of transfer of Current assets at price other than recorded in the books of the proprietor will result into business profit/loss.
.
Stamp Duty in case of property is not required to be paid in case partners have a mutual understanding.
.
.
Any profit arising out of transfer of Current assets at price other than recorded in the books of the proprietor will result into business profit/loss.
.
Stamp Duty in case of property is not required to be paid in case partners have a mutual understanding.
.
09 May 2012
Transfer of Capital Assets from Properietory concern to Partnership will attract Income Tax in the form of Capital Gains.
But if Company is created instead of Partnership Firm, then there will be no Capital Gain Tax (subject to some provisions)
Further, No Stamp Duty is required for sole properietor
However you have to execute Partnership Deed on the appropriate value of Stamp Paper (which is different in every state)
In case you create company, then there is also required to pay Stamp Duty during Incorporation of Company (which is again different from state to state)
But if Company is created instead of Partnership Firm, then there will be no Capital Gain Tax (subject to some provisions)
Further, No Stamp Duty is required for sole properietor
However you have to execute Partnership Deed on the appropriate value of Stamp Paper (which is different in every state)
In case you create company, then there is also required to pay Stamp Duty during Incorporation of Company (which is again different from state to state)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
