30 July 2011
A PARTNERSHIP FIRM HAVING TWO PARTNERS WANT TO CONVERT THIER PARTNERSHIP FIRM INTO SOLE PROPRIETORSHIP BY RETIRING ONE PARTNER. HOW AND WHAT IS THE PROCEDURE IN INCOME TAX AND FOR VAT. WILL CAPITAL GAIN ATTRACT FOR THE SAME
In my view, you have to dissolve the partnership first and transfer the assets to the new proprietor which may attract capital gains.
Please wait for more views on the same.
VAT
In VAT, you simply have to take new registration of VAT. This can be obtained in the old name also. and it will have no relation with the old business.
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