rules under U.P. VAT ON business taken over by family member

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This query is : Resolved

Dr. Devendra Kachru (Querist)

08 October 2009 Dear Experts !
Please help me urgently.
Our family business regd under UP Trade tax since 1991 got TIN # subsequently. About 6 months back proprietor died and as per his will another member of family informed UP VAT Deptt the facts and accepted the laibilities and declared an existing stock ( vat paid) of Rs25 Lakhs.
Our legal counsel filed application u/s 75 coupled with rule 33 & filed FORM XII too.He also claimed that TIN # be amended accordingly.

However , the Tax officlas first allowed the plea on file and later onprior to written order cancelled the registration on plea that U/s 35 , a new TIN # has to be applied.

I am not aware of the VAT rules and expect that if liabilty is accepted then the input tax along with stocj transfer should be allowed.
My question is that if there is any merit in the plea taken by my cousel and if so should we go on appeal to tribunal and higher courts.

Regards! I shall be very great ful for the advice soon

Amit Sheode

Amit Sheode (Expert)

09 October 2009 Sec 75 of UP Act deals with voluntary transfer or change in business. In the present facts the business is no more because the sole proprietor has expired. Hence Sec 75 is not applicable
Sec 35 of UP Act deals with allotment of no who is obliged to effect TDS hence prima facie the Section is not applicable.
So far as the need to get a fresh TIN is concerned, it is certainly mandated because the business is no more.
However there must be a provision for transfer/ transferee in such cases. Hence apply for fresh TIN under that provision.
If the dealer has died intestate then a NOC of all heirs along with affidavit has to be filed to get the registration in new name. If there is a will then the business can be taken over as per will.
A simple solution to this qua VAT is to issue Tax invoices of all movable goods in the name of transferee so that Input credit can be taken of the same. Pls refer to specific provisions under the UP Act.

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