Changes to be effected while transfer of ownership

  Mr RR Jain,

 When A has been acquired by B,regarding VAT follow these steps:

 1) File an application on plain paper before the registering authority declaring the sale to B with reasons and surrender the original VAT RC,CST RC and PT RC

 2) File the monthly return upto date and also the annual return in form 240,along with a balance sheet drawn by a CA.

 3) Pay all taxes due along with penalty and interest and obtain also a clearance certificate(optional and if required by the buyer).

4 ) Make an inventory of stock and movable assets with references to purchaase bills and TIN Nos of suppliers .

5) Surrender all the statutory forms un used and left at the of sale of business.

6)If any cases of audit or appeals are pending with the department or courts try to finalise them before sale.

MJK