I have a pvt ltd company which has a turnover of average 10 crore for last 5 years.
i want to convert it to LLP,
Is any capital gain tax on share transfer . all shareholder now partner in LLP.
1 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 27 April 2021
Section 47(xiiib)
Following shall not be regarded as a”transfer” , therefore, no capital shall arise on the following :
1. Any transfer of a capital asset or intangible asset by a private company or unlisted public company to a limited liability partnership
2. Any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008
Following shall not be regarded as a”transfer” , therefore, no capital shall arise on the following :
1. Any transfer of a capital asset or intangible asset by a private company or unlisted public company to a limited liability partnership
2. Any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
