Converting one proprietary business into Partnership firm
This query is : Resolved
14 March 2020
Hello sir,
We are converting one proprietary business into Partnership firm.
Kindly request you to update us on below mentioned dilemma.
a. Can eligible ITC as per Electronic Credit Ledger will be transferable from proprietary business
to Partnership Firm.
b. If answer is affirmative, than please inform the procedure.
c. And if the same is not allowed than please inform the section.
We are converting one proprietary business into Partnership firm.
Kindly request you to update us on below mentioned dilemma.
a. Can eligible ITC as per Electronic Credit Ledger will be transferable from proprietary business
to Partnership Firm.
b. If answer is affirmative, than please inform the procedure.
c. And if the same is not allowed than please inform the section.
CA Anita Bhadra
(Expert)
14 March 2020
Yes, Eligible ITC is transferrable.
As per Rule 4 of the ITC Rules, the transferor shall fill Form ITC-02 for transfer of unutilized credit and transferee need to accept the details of Form ITC-02.
Where there is a change in the constitution of a registered taxable person on account of the sale, merger, demerger, amalgamation, lease or transfer of the business, the transferor shall be allowed to transfer the input tax credit that remains unutilized in its books of account to the transferee.
As per Rule 4 of the ITC Rules, the transferor shall fill Form ITC-02 for transfer of unutilized credit and transferee need to accept the details of Form ITC-02.
Where there is a change in the constitution of a registered taxable person on account of the sale, merger, demerger, amalgamation, lease or transfer of the business, the transferor shall be allowed to transfer the input tax credit that remains unutilized in its books of account to the transferee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- GST on reimbursement of expenses
- Query on effect of registration of property
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Wrong CMPo8 file
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Additional trade name
- Equity Share Sale and Purchase
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
