Chetan D. (Management Accountant) (89 Points)
21 September 2009Hello Friends,
My question is -
Suppose there is company which holds only one land as an asset and corresponding no. of shares as capital. And suppose we want to transfer the land. So can we transfer the land in form of shares of company? What are the tax implications? And whether the stamp duty payble on such land?
Thanks In Advance
Regards
Chetan
Max Payne
(employed)
(2574 Points)
Replied 21 September 2009
You can buy out the entire share capital of the company, i.e., AMALGAMATE. The amalgamation should be in the nature of merger. U should issue your company's shares as consideration to the shareholders of the vendor company.
The land is automatically conveyed to you by purchasing the company. So there wont be any expenses for that.
there wont be capital gain for vendor company by virtue of section 47 of the income tax act.
Chetan D.
(Management Accountant)
(89 Points)
Replied 21 September 2009
thanks,
a very useful information
CAclubindia
