20 November 2010
Clause (xiii)(b) of section 47 reuires that all the partners of the firm immediately before the succesion become the SH of the Co. in the same proportion in which their capital accounts stood in the books of the firm on the date of succesion; Clause(d) reuires that the SHing in the Co. of the partners is not <50% of total voting power SO does it means that partners holding in the Co on the day of succesion can be 50%.
20 November 2010
No, it is not like that, not less than 50% of voting power should exist, in order to get the benefit of carried forward of lossess if any,in the elsewhere firm.
21 November 2010
If a firm is succeded by a company by way of transfer of capital assert or intangible asset of the firm, and not less than 50 % of the voting power in the company is held by the partners of the then firm, such a transfer will not come under the ambit of transfer as per section 45 and accordingly no capital gains tax attracts in the said transfer meaning thereby 50% and above should be held by them.
21 November 2010
In other words we may say that the balance of voting power in the company may be held by persons other than the erstwhile partners. As such holding of partners may be more than 50% but outsiders holding should not be more than 50%.
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