Complicated - one proprietor - two different firms - 4 seperate businesses!!!!

Tax (Student) (165 Points)

27 January 2017  

Assessee has two different firms registered. A & B.. 

 

He has 4 seperate businesses. 

 

Three businesses are under one firm...  A

 

One business of government contracts is under the second firm... B

 

Problem - 

 

The second registered firm "B" dealing with government contracts was earlier a partnership but it is now a proprietorship firm... 

 

He wants to merge all 4 businesses under Firm "A" so that he doesn't have to take seperate VAT & Service Tax numbers for the same... 

 

But Firm "B" is an old firm with a lot of goodwill amongst govt clients.. 

 

Hence the assessee doesn't want to bid for govt contracts in the name of "Firm A"..

 

Can he use "Firm B" as a tradename and request for "purchase orders" to be made in the name of "Firm A" and take VAT & Service tax numbers only for "Firm A"??? 

 

But he has to quote Firm name WITH VAT & SERVICE TAX NUMBER even while registering and bidding for government contracts... Hence he cannot quote Firm B which does not have VAT & Service tax number anymore..

 

How to solve this issue??