Partnership firm having profit will be taken over by pvt ltd company having loss

Rizwan Husain (Querist) 25 November 2016 This query is : Resolved
Back Ground :

Family managed partnership firm and pvt ltd company having different business segments.

partnership firm paying income tax since it has positive income

where as pvt company having huge carry forward loss

Issues :

how to plan such a way that the loss in pvt ltd company may be utilized in partnership firm since it run by one family only

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Kumar Doab (Expert) 25 November 2016
Your own counsel specializing in company matters can advise you.

You can also post your query in sister website of LCI;

www.CAclubindia.com

Your counsel can advise you in detail.

You may explore Reverse Merger.

Kumar Doab (Expert) 25 November 2016
You may find the link relevant and useful.

Guest (Expert) 25 November 2016
Nothing wrong if the company takes over the firm.

Rajendra K Goyal (Expert) 25 November 2016
Both firms can be merged.

After merger / taking over the owner is one firm.

Single return need to be filed which would caste total p & L.

For details discuss with your tax consultant.

Hemant Agarwal (Expert) 25 November 2016
1. FIRSTLY convert Partnership Firm into "Pvt. Ltd." company (two month procedure)

2. AFTER above, the new Pvt. Ltd. Co. may just simply acquire & merge the loss making Pvt. Ltd. Co., with all its Assets and Liabilities (which includes the loss).

Keep Smiling .... Hemant Agarwal
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