Method of sale to be adopted
Rajesh Kumar Agrawal
(Querist) 18 July 2017
This query is : Resolved
1)A Land is purchased and registered with the Registrar of Assurances in the name of A,B and C, in 2007. 2)The above Land was transferred in the name of a Company XYZ Pvt Ltd.,in which all A, B and C are the Directors,in FY 2009-2010 3) The Company issued Equity Shares to the Directors A, B and C in FY 2009-2010on account of sale consideration of the Land . The Land was not registered with the Registrar of Assurances. 4) In FY 2010-2011, the Company erected a factory building on the above Land. 5)Land and Buliding, both are now reflected in the Books Of Accounts of XYZ Pvt Ltd., since FY 2010-2011. 6)Now, Can the Directors, (A, B and C) of the Company , ie., who happen to be the owners of the Land in the record registrar of Assurances, and state land revenue records, (as the land was registered in their name with Registrar of Assurances) NOMINATE the Company XYZ Pvt Ltd., to sell the land. 7) Building will be sold by the Company. Kindly advise.
Looking forward to a quick reply.Thanks and regards
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Adv. Vaishali Harish Gore
(Expert) 20 July 2017
the land should be registered in the name of the company. Pass a resolution and do the necessary registration.
Adv. Vaishali Harish Gore
(Expert) 20 July 2017
the land should be registered in the name of the company. Pass a resolution and do the necessary registration.
Rajesh Kumar Agrawal
(Querist) 20 July 2017
Madam/Sir,
Because the land has to be sold to a third party and, if the land is registered in the name of the Company ,then the Company has to register again the land and building in the name of third party who is buying the property. If this procedure is followed then , the registration charges and stamp duty has to be paid twice once by the Directors to register in the name of Company and again by the Company for registering the land and building in the name of third party. As a consequence , now the incidence of Capital Gain will arise both in the file of the of the Directors and in the file of the Company separately. This will entail incurring not only stamp duty and registration charges twice but also Capital tax gain twice. Kindly advise further . Thanx for the earlier reply. Can't a procedure be adopted so that these are incurred only once and incidence of these be avoided twice .
Looking forward to a quick reply.
Thanx and rgds
