Rajendra (CS) 12 April 2012

Conveyance - stamp duty

Dear Members,

If N.A. Land is in the name of individual A, he is forming a partnership firm with B and C, towards contribution of his captial "A" is bringing his LAND as share of his under new partnership Firm and B & C will contribute money towards their respective Shares. Whether land which is brought in by A into the partnership firm is amount to conveyance ? and will it attract stamp duty.

Regards,

RAJENDRA PATEL

Reply Follow

2 Replies

pervez (adviser) 12 April 2012

No. It will not.. It is not considered as a transfer ..... A land contributed to the capital of the firm, becomes the property of the firm in the books of accounts... while retiring, the partner who has contributed land in the the capital of the firm can either take back the property or his share.. The partnership deed should contain the relevant provision about settlment of the share of each partner in case of dissolution or retirement, besides sharing of profits... ...

Hope this will statisfy yr query... regards

Rajendra (CS) 12 April 2012

Dear Mr. Parvez,

Thank you very much for your views, my query is whether at the time of Forming partnership Firm one particualr partner is bringing his N.A. Land towards his contribution and rest of the two partners will contribute cash towards their shares. So query is whether contribution towards share capital as Land will attract stamp duty or not. In case if he retires he will not carry Land Back in that case he may carry cash only.

Regards,

RAJENDRA