M.R.KANNAN (PRACTICE) (99 Points)
23 April 2012A sole proprietory business in jewellary is converted into a company whereby stock and all other assets / liabilities of the sole proprietory business are taken over by the newly formed company.
Is this transfer of stock in take-over liable for charge of VAT under Tamilnadu Act, equating the transfer to a sale by the sole proprietor to the company?
Chetan
(Officer)
(112 Points)
Replied 23 April 2012
Mr.Kannan, according to me the transfer is equating to sale of assets by a propreitorship to the company. So as per the Sale, it is liable to VAT.
Pankaj Arora
(Learner)
(3134 Points)
Replied 25 April 2012
ANANDAKUMAR
(PROPRIETOR)
(66 Points)
Replied 27 April 2012
AS PER SECTION 19(14), THE ITC AVAILABLE ON STOCK CAN BE TRANSFERRED TO CONSTITUTION CHANGED FIRM. BUT THE DEALER HAVE TO SATISFY THE ASSESSING OFFICER BY SUBMIKTTING RELEVENT DETAILS BEFORE HIM WITHIN 30 DAYS FROM DATE OF CHANGE
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