TWO BUSINESS OF SAME ASSESSEE

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This discussion addresses the tax treatment for an individual operating two businesses under the same PAN: construction and cement trading. Key questions revolve around whether to issue an invoice when cement is used in the construction business (treated as a sale to self) and if Input Tax Credit (ITC) can be claimed on cement purchases. The consensus suggests that separate business identification isn't required, and stock used for construction should be directly reduced from closing stock at cost price.

CA JAYESH RELKAR

CA JAYESH RELKAR (Querist)
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15 December 2020 Facts of the case : Assessee has 2 business, one is of Construction and another is of Cement trading.

If he has used cement bags for his construction business, then two issue arises

1) Sale to self (another self business). Shall we issue invoice in self name??
2) Shall we take ITC on purchase of Cement bags ??

Lekhraj sood

Lekhraj sood (Expert)
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15 December 2020 No need to issue invoice and take ITC.Separate business identification not required as both businesses under same PAN, both businesses are to be treated as business of the tax payer.

CA JAYESH RELKAR

CA JAYESH RELKAR (Querist)
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18 December 2020 Thank you sir,

But, what is the treatment of stock?? Should Stock used for construction business be directly reduced from closing stock at cost price? Please Suggest stock treatment..

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