I have a query relating to Property of firm. There is a firm "XYZ" having 3 partners 'X' 'Y' 'Z'. 'X' wants to introduce his own Land into Firm as his Capital. The business of firm is to develop the Land into residential flats. Now my question is what is the treatment the firm should follow in following situations; 1) When partner introduced land in firm how the transfer took place? 2) When the firm sold developed flats to intended buyers, who executes the sale deed? 3) If in future "X" wants to purchase a flat from firm then how the flat transfer in the name of "X"? 4) How this land transferred in the name of Firm at Local Registrar Authority?
13 September 2012
I think instead of bringing the Land in Firm, the Firm and that Partner (in his individual capacity) should enter into Development Agreement with suitable terms and conditions. Rasik Dagli Advocate email@example.com
15 September 2012
any person at any point can become a partner with the consent in writing of existing partners there after the land becomes stock in trade thereafter it will be dealt with as partnership property and firm can deal with it accordingly
"X" wants to start Real Estate business (ie developing his Plot into Flat scheme) now he wants to start Partnership Business along with his 3 sons. In future he wants to retain 2 Flats from this Flat Scheme. What is the best solution to save Capital Gain? He can start business Individually if this solution helps to save his Tax??
22 September 2012
"X" should take care in drafting the documents for this purpose. Approach a property Lawyer and also a Tax Expert and proceed further as per their advise. RASIK DAGLI Advocate firstname.lastname@example.org