Need very urgent advise!!

Tax queries 746 views 3 replies

Pavel

Student CA Final

212 Points Joined March 2014

Dear Experts, I am having some questions regarding various matters. I require your professional advise. 1.Suppose if I start a proprietership business and take a service tax registration in my own name and then later on if I start a company of my own then can I, by making myself director, transfer the service tax registration taken for my own to the newly formed company ?? 2. what is the maximum penalty faced for delay in tax audit for ay 2013-14? What are the charges thereof for conducting tax audit? 3. Can a person take a separate PAN for his sole proprietership business and have a current a/c for his business? 4. If a person is having a turnover of around 3 cr in his sole proprietership business, what will the problems faced by him if he keeps it sole proprietership/ converts it into partnership firm/ converts it into company ? (from the taxation point of view) Require your advise urgently!!

Replies (3)

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

1. No. You cannot transfer.2. I am not aware of the Maximum penalty. Tax auditor will charge fees depending upon the intricacies of your case and the time involved in it. 3. For sole proprietorship - You cannot get PAN in proprietorship name. PAN can be only in the name of individual( proprietor ). Current account of proprietorship business can be opened. Documents as prescribed will be required. 4. If proper tax is paid and everything else means p/l , balance sheet etc all is properly maintained and disclosed , then turnover and legal form - both is irrelevant

gbalakrishnan

owner

1373 Points Joined January 2012

you being a proprietor can take number but once your business is transferred you can apply for cancellation of the registration number and your company can make itsown application for registration under service tax...yea you need to say clearly you closed your proprietary business for obvioys reasons....there is no law saying you cannot make applcation for cancellation of your service tax number regn...