• Automatic Transfer All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the LLP.
No Stamp Duty All movable and immovable properties of the firm automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
No Capital Gain Tax No Capital Gains tax shall be charged on transfer of property from firm to LLP.
Continuation of Brand Value The goodwill of the firm and its brand value is kept intact and continues to enjoy the previous success story with legal recognition.
Carry Forward and Set off Losses and Unabsorbed Depreciation The accumulated loss and unabsorbed depreciation of Partnership firm is deemed to be loss/ depreciation of the successor LLP for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor LLP.
CAclubindia
