Transfer of business from mother to son
This query is : Resolved
29 March 2019
TRANSFER OF BUSINESS FROM MOTHER TO SON (i.e. from Proprietor to Proprietor)
What is the process for transfer of business from mother to son (not reason of death)?
Can son cliam ITC by way of ITC - 02 Form?
Is there any manual procedure to be followed?
What is the process for transfer of business from mother to son (not reason of death)?
Can son cliam ITC by way of ITC - 02 Form?
Is there any manual procedure to be followed?
Shashikant Varshney
(Expert)
29 March 2019
Raise a Invoice and sale the all the inventory to Son's GSTN.
29 March 2019
That mean we can not take credit bt ITC 02, right?
Shashikant Varshney
(Expert)
29 March 2019
GST ITC-02 Filing
GST ITC-02 can be filed for transfer or matched input tax credit in case of the following circumstances:
In case any registered institution undergoes sale, merger, de-merger, amalgamation, lease or transfer, the institution or organization must file an ITC declaration for transfer of ITC in the Form GST ITC-02.
The acquired/ transferer institution should have matched Input Tax Credit available in the Electronic Credit Ledger, that is effective from the date of merger/ acquisition/ amalgamation/ lease/ transfer.
The transferee and the transferor should have GST registration.
It is mandatory for the transferor to file all GST returns in the past periods.
All the pending transactions for the action of merging should either be accepted, rejected or modified and all liabilities of the returns filed by the transferor must be paid.
The transfer of business has to be with an accurate provision of transfer of liabilities which will be the stayed demands of tax, or with any litigation /recovery cases. It has to be accompanied by the certificate that is issued by the Chartered Accountant or Cost Accountant.
GST ITC-02 can be filed for transfer or matched input tax credit in case of the following circumstances:
In case any registered institution undergoes sale, merger, de-merger, amalgamation, lease or transfer, the institution or organization must file an ITC declaration for transfer of ITC in the Form GST ITC-02.
The acquired/ transferer institution should have matched Input Tax Credit available in the Electronic Credit Ledger, that is effective from the date of merger/ acquisition/ amalgamation/ lease/ transfer.
The transferee and the transferor should have GST registration.
It is mandatory for the transferor to file all GST returns in the past periods.
All the pending transactions for the action of merging should either be accepted, rejected or modified and all liabilities of the returns filed by the transferor must be paid.
The transfer of business has to be with an accurate provision of transfer of liabilities which will be the stayed demands of tax, or with any litigation /recovery cases. It has to be accompanied by the certificate that is issued by the Chartered Accountant or Cost Accountant.
Message likes :
1 times
29 March 2019
Ok i understand
thank u sir
thank u sir
29 March 2019
Sir whether clarification in circular no 96/15/2019 issued on 28th March, 2019, applies in our case also?
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
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Visiting card purchase
- Wrong CMPo8 file
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- 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
