| Question And Answer | |
|---|---|
| Subject: | What precautions be taken when a property of partnership is purchased ? |
| Category: | General Law |
| Querist: | Gandhi |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | precautions, Property of firm |
| Date: | May 11, 2021 |
I desire to purchase a House property which is in the name of Partnership firm from Housing Society, what percussions I should take, from the liability of Direct and Indirect taxes and as per general law? I desire to purchase a House property which is in the name of Partnership firm from Housing Society, what percussions I should take, from the liability of Direct and Indirect taxes and as per general law?
The following are some of the precautions that need to be taken:
Direct tax:
1. The stamp duty value of the property is in consonance with the Sale price for the purpose of section 50C and section 56(2)(x) of the Act.
2. Get an undertaking from the partners that there is no tax liability on the firm under the direct taxes and indirect taxes and also said property is not mortgaged to any bank or financial institutions.
General Law:
1. Procure a survey report from the Registrar’s Office
2. Procure a No-objection and No-dues certificate from the Housing Society.
3. Collect the chain of Sale Agreements of prior owners (if possible).