Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 113765
- 0 -

Conversion of Company into LLP

Date 22 May 2018
Replies1 Answers
Views 1106 Views
Asked By

Hi Sir,

One of our clients is looking to convert their Unlisted Public company into a LLP.

A summary of their financial position is as under:

Equity & Liabilities

Share Capital-Rs. 1 crore,

Securities premium-Rs. 1 cr,

Revaluation Reserve- ₹ 8cr.

Assets

Land (Original cost 2cr)- 10 cr

Now as per section 47(xiiib), to claim exemption from income tax on conversion into LLP, the value of assets of the company in any of the last 3 years should not exceed 5 crs. My question is since in our case, actual cost of land was only 2cr and it was only shown at 10cr due to revaluation, can we claim compliance with such condition?

At the alternate if we proceed with conversion without complying with such condition, what would be the sale consideration for such transfer of the capital asset being land since no actual consideration will be there.

1 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Aug 7, 2018
1.

Section 47(xiiib) deals with the conversion from partnership to a company. But your case is different.

Old Query - New Comments are closed.

Hide
Recent Issues