08.08.2014
An Individual has a HUF, in India and has also formed an Pvt. Ltd. Co., In India.
Further there is an rental Premises whose rent is currently being paid by HUF.
The Pvt. Ltd. Co. intends to (A) take all the fixed Assets of HUF at Face Value (B) work out an arrangement where all the existing licenses of HUF would be transferred to Pvt. Ltd. Co. (C) All the take over the Assets and Liablities of the HUF. (D) the rent shall be paid by Pvt. Ltd. Co. instead of the same being paid by HUF.
In the given situation, kindly suggest the best course of action / agreement that can be executed.
(a) Would MOU be better or would it be advisable to enter into Business Transfer Agreement (BTA). In the event BTA is executed would there by any stamp duty that would be payable by the Pvt. Ltd. Co. for taking over of Assets and payments of Rent for and on behalf of HUF.
(b) For the rental being paid by the Pvt. Ltd. Co. -- Averement be made in MOU / BTA to the said effect and a Tripartiate Agreement be entered amongst HUF, Pvt. Ltd. Co and the Lessor where Lessor would be Confirming Party.
Kindly advise.
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Thanks and Regards,
Mandeep Virdi
