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GST on transfer of partnership share in LLP, Goods and Services Tax - GST |
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GST on transfer of partnership share in LLP |
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There is a corporate restructuring within a bunch of group companies. I would like to know the taxability under GST of transfer of partnership share by a partner in LLP to a existing partner or in case of a third party against shares in a private limited company. As per my understanding, shares against share in partnership is a barter transaction. Transfer of shares will be outside GST as it securities. But the other leg, i.e., transfer of partnership share the same will qualify as 'supply of service'. Posts / Replies Showing Replies 1 to 4 of 4 Records Page: 1
How does transfer of partnership share occur? Retirement and admission of partner right? So are you saying that this person is giving away his right of profit which is a service?
Is there any agreement to this effect?
There is no agreement yet. But this arrangement is still in talks and we are exploring the avenues. Yes, existing partner is giving up interest in partnership and retiring. In return he is receiving shares in another company and Company will become the new partner.
The nature of agreement between the retiring partner and the incoming partner will decide the taxability In the other scenario, it would be in the nature of repayment of capital of the retiring partner and should not be liable to GST. Page: 1 |
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