Taxation on conversion of private limited company into llp

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Bhargav Thakkar (Querist)
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18 April 2014 Dear Sir,
One of our client (pvt ltd Co) wants to convert into LLP, On conversion what will happen to the Reserves & Surplus of the existing Co? Can directors withdraw money from accumulated profit of company as consideration for such conversion?
And liable for Corporate dividend tax?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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19 April 2014 FOR TAX FREE TRANSITION INTO LLP U HAVE TO FOLLOW THE CONDITIONS OF SECTION 47(XIIIb) One of condition is that no benefit direct or indirect can be apid to directors within three yrs fm date of conversion.
No corp div tax will be there as LLP is akin to Firm for tax purposes.
CA MANOJ GUPTA
JODHPUR
09828510543

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