claim of input vat credit by the legal heir

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This query is : Resolved

nilakandan (Querist)

18 April 2009 Since the father of the assessee had expired, the existing PGST(before Puducherry VAT) had been closed on 30.06.2007 and the sale invoice has been prepared to transfer the stock to the legal heir(son) who in turn gets a new registration under Puducherry VAT w.e.f. 01.07.2007. Is is possible to get the input VAT relating to the transferred goods received from his father? If so, please reply with reason. In my view, when the goods are transferred to his son(legal heir), the inherent meaning is transferring of liability on such goods is also exited and hence the legal heir is eligible to get the input vat relating to the transferred goods from his father's business(who has already expired and whose licence is closed under old PGST Act)

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

18 April 2009 In the above referred case first you should have got the new registration for the son and then you should sell from the estate of the father (expired person business) Then automatically the out put vat of father concern will be input vat of son.

Before registering if you sell goods from father company to son company, son company will become unregistered dealear and purchases made by unregistered dealer - input vat is not available.