• Conversion of a partnership firm in LLP

Is there any STAMP DUTY impact in MAHARASHTRA , if a partnership firm is converted to LLP ?
 The partnership firm is into land development activity/ builder/ real estate developer. 
This firm contains only one lands DEVELOPMENT AGREEMENT AND POWER OF ATTORNEY. So just wanted to know will "STAMP DUTY 
" need to be paid for conversion to LLP. 

Is there any" other impact "from taxation or any other duty point of view for this conversion? Eg : capital gain tax etc etc
Asked 4 years ago in Capital Gains Tax

1.All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the LLP due to Automatic Transfer.

2.And as all movable and immovable properties of the firm automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.

3. Hence, No Capital Gains tax shall be charged on transfer of property due to conversion from firm to LLP.

 

 

Amruta Harshal Baser
CA, Jalgaon
69 Answers

4.9 on 5.0

Dear Sir,

 

No, there would be no stamp duty impact on the same.

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

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