Answers On Topic: reconstitution
A firm has 3 partners A,B and C. Partner B is retiring and his credit balance of capital/current account is taken over by partner A. Partner A is issuing "memorandum of debt" to retiring partner C. The debt instrument is proposed to be registered with registration department of immovable properties paying requisite stamp duty for registration of debt instrument. The firm has immovable property and machineries and is a manufacturing concern.What are the tax implication for the firm, partner A and retiring partner C ?.
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Assessee is partnership firm having 5 partners ,engaged in the business of construction. The firm has undertaken the construction of housing project. In the partnership deed, it is agreed by and between the partners that all partners will contribute the capital equally and their profit sharing is equal. It is also agreed that in case capital contribution is not made equally, then the profit sharing which is decided as equal, will be change as per the capital contribution by executing the fresh partnership deed. Accordingly partners have decided to execute the partnership deed and change the profit sharing ratio as…
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In view of newly amended section 9B and Section 45(4) by F.A. 2021, whether there is any difference in terms – Dissolution vis-à-vis reconstitution? Section 9B refers to cases of reconstitution or dissolution whereas; s. 45(4) only refers to reconstitution. Whether the amended section 45(4) is applicable to case of dissolution of firm?
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FIRM RECONSTITUTION