Sell of good from partnership

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If you've closed a partnership firm and started a proprietorship, you can transfer remaining stock to your new business. However, this action means you'll need to file updated GST returns for the month the stock was transferred and complete the Income Tax filing for the relevant financial year. This effectively means the partnership firm cannot be fully closed in March 2020 if stock is transferred later.

Ashim kr Ray

Ashim kr Ray (Querist)
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21 May 2020 Sir,
I have close my partnership firm in the month of mar 2020, and open proprietorship business and returns of IT and gst is pending of partnership firm.
Here i want to know, the stock which i have in partnership firm, can be shown sold to my new business in this month.

Please suggest its very important.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2020 Yes the stock can be shown as sold to new business in current month.

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Ashim kr Ray

Ashim kr Ray (Querist)
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21 May 2020 Thank you sir, but one thing, as stock sold shown in this may month, then i have again to submitted gst return for this may month of partnership firm and again i have to prepare Income tax filed for FY 20-21.That mean i cannot closed my partnership firm in March 20. Am i right Sir??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2020 Yes you are right.............

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