we have converted our pvt ltd co to llp one month ago.
Some fixed deposits are maturing next month.
can we two partners withdraw that amount equally without paying dividend distribution tax.
2 Replies
Gauthami
(Student CA Final )
(431 Points)
Replied 16 August 2018
no...u cannot withdraw...As per sec 47A i.e withdrawal of sec 47(exception to transfer), when pvt ltd co converted into LLP then shareholders of company should not receive any consideration other than share in profit. if any consideration received then it shall be deemed as transfer n transferor shall be liable to pay tax
T T Parwani
(Others)
(86 Points)
Replied 17 August 2018
Dear sir,
Thanks for reply.
This year we will pay tax from llp on interest earned on fixed deposits.
If partners withdraw that interest amount equally , will it be treated as income in their hands.
T T Parwani
Thanks for reply.
This year we will pay tax from llp on interest earned on fixed deposits.
If partners withdraw that interest amount equally , will it be treated as income in their hands.
T T Parwani
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