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Business Transferring to Son

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Sunilkumar Gondkar

148 Points Posted on 27 February 2023

Hello experts

If father is running the business and having the stock of about 20 laks, now father wants to take retirement and willing to transfer his business to his son.

1 What is the procedure under GST?

2 How the stock been transfer to son?

awaiting your valuable response

Replies (4)

Quick Summary

This discussion addresses the GST implications when a father wishes to transfer his business, including stock worth £20 lakhs, to his son upon retirement. The recommended procedure involves a business transfer agreement, forming a new proprietorship for the son, and treating the stock transfer as a sale. The father's GST registration may need cancellation, while the son can register at his discretion.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 27 February 2023

Enter into transfer of business agreement.

CA Raj Doshi

Practising CA

8954 Points Posted on 27 February 2023

Form a New Proprietorship of son. Do a sale transaction from father's business to son's business

CA Sorav Gupta

Chartered Accountant

1005 Points Posted on 28 February 2023

GST registration in the name of the father (if proprietorship) needs to be applied for cancellation. The stock will have to be shown as sales to the son. The son can obtain GST registration at his discretion subject to the GST provisions.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)