Transfer of business from mother to son

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VAISHALI PARTH AND ASSOCIATES (Querist)
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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?

Shashikant Varshney

Shashikant Varshney (Expert)
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29 March 2019 Raise a Invoice and sale the all the inventory to Son's GSTN.

VAISHALI PARTH AND ASSOCIATES

VAISHALI PARTH AND ASSOCIATES (Querist)
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29 March 2019 That mean we can not take credit bt ITC 02, right?

Shashikant Varshney

Shashikant Varshney (Expert)
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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.

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VAISHALI PARTH AND ASSOCIATES

VAISHALI PARTH AND ASSOCIATES (Querist)
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29 March 2019 Ok i understand
thank u sir

VAISHALI PARTH AND ASSOCIATES

VAISHALI PARTH AND ASSOCIATES (Querist)
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29 March 2019 Sir whether clarification in circular no 96/15/2019 issued on 28th March, 2019, applies in our case also?

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