LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Sale of proprietorship business to pvt. ltd. company

renu dutt (c a) (231 Points)

16 August 2018

Hi, one of our client which is a private limited company has acquired the proprietorship business which is run by the father of the director, who is also a director in the said company. Now my question is what are the compliances under GST that the acquirer has to make, which GST forms is the company required to file to show such acquisition. Further how will the transferor show the sale/supply of stock and capital assets under GST.

Reply
Follow
Share

2 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 16 August 2018

File ITC 02,
surrender the GSTN of proprietor firm , while this process select the reason for surrender , then after it will ask the GSTN of tranferee. give the GSTN of company

Note : both the firm should be in same state

1 Like

renu dutt (c a) (231 Points)
Replied 22 August 2018

Thank you Pawanji, there is one more query.. how should we show /transfer stock in trade in the transfree company. Is we show sale then we will have tp pay gst on the goods , how will then the co. show the goods in their account.