Ameet (L) (1678 Points)
05 March 2010Accd reading by me, Budget Silent on treatment of conversion of Company in to LLP on the hands of shareholder. Whether it will be coniser as Transfer or not. They have made amendment in capital gain sections only on the hands of company u/s. 47 and not on the hands of Shareholder.
wht will be the treatment ?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 05 March 2010
Yes i totally agree with you that the budget is totally silent on the provisions relating to shareholders in case of transfer of company to LLP.
However as per the conditions for transfer no cash is allowed to be paid to the shareholder on conversion the same should not be liable to tax and it should have been included in section 47 as an execption to transfer
Ameet
(L)
(1678 Points)
Replied 05 March 2010
Yes, i agree same thing i m expecting which is need to be inserted in Section 47.
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