Page 337 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes 14.7 Review Questions

1. What are the conditions applied in the conversion of sole proprietary business into
company?
2. Elucidate the requirements and issues related to the takeover of a sole proprietorship
concern.
3. “The sole proprietorship is a completely separate legal form from a company and the law
does not provide any process for conversion from one form to the other.” Explain.

4. What are the conditions applied in the conversion of partnership firm into company?

5. Highlight the advantages of conversion of partnership firm into company.

6. Define slump sale. What are the key characteristic features of slump sale?
7. Write short note on net worth.
8. Discuss the steps involved in slump sale.

9. Explain the role of taxability in slump sale.
10. Describe trade-off between itemised sale and slump sale.

11. Define holding company. Explain transferring of assets between holding and subsidiary
company.
Answers: Self Assessment

1. Sole Proprietary 2. Low
3. Transfer 4. Capital gains
5. False 6. False
7. True 8. True
9. Slump Sale 10. Net worth

11. Valuation 12. 5-10%
13. False 14. True
15. True 16. False

14.8 Further Readings

Books Ahuja, G. K. & Gupta, Ravi, Systematic Approach to Income Tax, Bharat Law
House.
Aggarwal, K., Direct Tax Planning and Management, Atlantic Publications.
Lakhotia, R.N., Income Tax Planning Handbook, Vision Books.
Singhania, V. K. & Singhania, Kapil, Direct Taxes law & Practice. Taxmann
Publications.
Srinivas E. A., Handbook of Corporate Tax Planning, Tata McGraw Hill.

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