Sale of office premises -tax implications

Rajesh Poddar (Chartered Accountant) (321 Points)

23 February 2012  

Dear Sir,

Private Limited company is having "Office Premises" under fixed assets.

This is the only asset owned by the company.

WDV as on date Rs. 2 Lakhs

Market Value/Ready Reckoner Value around Rs. 1 CR.

Now one of the Shareholder holding 50 % wants to buy this premises.

Can the assets be transferred at Book value i.e. Rs. 2 Lakhs ? instead of market value ?

Any other way to structure the above deal ?

Rajesh Poddar