A member of a CC sold his member's interest to the other member. So this transfer is subject to STT and Capital Gains Tax?
Does everybody declare these religiously and how is the STT declared, by the CC or the member who sold his interest?
A member of a CC sold his member's interest to the other member. So this transfer is subject to STT and Capital Gains Tax?
Does everybody declare these religiously and how is the STT declared, by the CC or the member who sold his interest?
The STT is payable by the CC or company. It is 0.25% of the proceed. It can be filed in efiling.
When you submit the normal ITR14 there is a question to the effect "was there a direct or indirect change in members interest". A yes answer without STT being paid obviously gives rise to questions.
Similarly the personal returns asks you to say yes or no to the CGT issue, so it actually requires you to apply your mind and answer the question. An answer that is not truthful at that point is probably fraudulent.
Beancounter (27-Jun-14)
That is what I assumed. Thanks for clearing up who has to declared what CLIVE-T. The practice I worked for before wasn't very concerned with doing everything 100% according to the book but the question in the ITR14 you mentioned came to mind, therefore my concern.
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