Stamp Duty payable or not at the time of Transfer of Assets at the time of Conversion into LLP
There is a dilemma for whether Stamp Duty is payable or not at the time of Transfer of Assets at the time of Conversion of Private Limited Company into LLP.
What LLP Act says;
a. As per Schedule III, point no. 6, effect of Registration, on and from the date of Registration, all
tangible (movable or immovable) and intangible property vested in the company,
all assets, interests, rights, privileges, liabilities, obligations relating to
the company and the whole of the undertaking of the company shall be
transferred to and shall vest in the limited liability partnership without
further assurance, act or deed; and the company shall be deemed to be dissolved
and removed from the records of the Registrar of Companies
What Ministry says:
What Professionals says;
No Stamp Duty is levied on Assets which will be converted into LLP. As, All movable and immovable properties of the company automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
"So, you cannot escape from paying the Stamp Duty on transfer of Assets by way of Conversion into LLP."
Professionals, please share your opinion on this with case studies and Provisions.
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