|QUERY:||P. Pvt. Ltd. wants to convert its status to status of Limited Liability Partnership (LLP), for which it has submitted that its total turnover is less than Rs. 60,00,000/- and total value of the assets does not exceed Rs. 5,00,00,000/- as appearing in the audited books of account of last three previous years.
How to covert status of Pvt. Co. into LLP without any tax implication as the word “value” appearing in sub clause (ea) of clause (xiiib) of section 47 means “Fair Market Value” or “book value”?
|ANSWER:||Click here to read the full answer of the expert|
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||Conversion of Pvt. Ltd. to LLP|
Chapter IV E – of the Income-tax Act, 1961 provide for “ Capital Gains”, which inter alia states for Transactions not regarded as transfer”.