Business Transfer

This query is : Resolved

Quick Summary

This discussion clarifies the process and tax implications of transferring a business, including significant stock value, to a brother. Initially, there was confusion about taxability, but it was confirmed that transferring the entire business (assets and liabilities) to a close family member like a brother is generally not taxable under GST, especially when using the correct forms like GST ITC-02. The procedure involves executing a business transfer agreement and handling the stock transfer via delivery challan and e-way bill. The query also touches upon business transfers in the event of the proprietor's death.

MADHU GSTP

MADHU GSTP (Querist)
Follow

29 August 2024 Dear sir

One of my client wants to Transfer he business to his own Brother with stock of 3CR and he is also having same Business and how can transfer and ..is tax applicable ??? can anyone tell me the procedure

Thank in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 August 2024 Treat it as gift to brother no tax payable.

MADHU GSTP

MADHU GSTP (Querist)
Follow

29 August 2024 Thanks you sir
but how to transfer the stock of 3cr and is GST tax applicable ????

plz little brief procedure sir

thank in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 August 2024 GST applicable on stock transferred ITC can be claimed.

MADHU GSTP

MADHU GSTP (Querist)
Follow

31 August 2024 ones Again Thank you for ur valuable suggestion CA. Seetharaman sir ....

Actually his brother not able to continue business so that total stock transferring to his Brother .as we confirmed with other CA he said that Transfer of all ( Assets & Liability ) to ur own brother is not taxable to under GST(forms GST ITC-02 : Declaration for transfer of ITC in case of sale, merger, or transfer of a business under Section 18(3) is not taxable under GST) and income Tax ....but asper ur suggestion is taxable kindly clear my confusion sir

suppose what is the procedure for total business transfer to family member in case of Death of proprietor sir ????

Thank in advance sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 August 2024 Yes, he is right.
I thought you are transferring part of the stock.
Execute business tranfer agreement and transfer the stock through delivery challan and E way bill.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now