Complicated - one proprietor - two different firms - 4 seperate businesses!!!!

Mahavat 231 views 1 replies

Assessee has two different firms registered. A & B.. 

 

He has 4 seperate businesses. 

 

Three businesses are under one firm...  A

 

One business of government contracts is under the second firm... B

 

Problem - 

 

The second registered firm "B" dealing with government contracts was earlier a partnership but it is now a proprietorship firm... 

 

He wants to merge all 4 businesses under Firm "A" so that he doesn't have to take seperate VAT & Service Tax numbers for the same... 

 

But Firm "B" is an old firm with a lot of goodwill amongst govt clients.. 

 

Hence the assessee doesn't want to bid for govt contracts in the name of "Firm A"..

 

Can he use "Firm B" as a tradename and request for "purchase orders" to be made in the name of "Firm A" and take VAT & Service tax numbers only for "Firm A"??? 

 

But he has to quote Firm name WITH VAT & SERVICE TAX NUMBER even while registering and bidding for government contracts... Hence he cannot quote Firm B which does not have VAT & Service tax number anymore..

 

How to solve this issue??

Replies (1)

"........Hence the assessee doesn't want to bid for govt contracts in the name of "Firm A"..........

Better to wind up firm A, as Firm B has better goodwill.

GST is going to be implemented soon, so from next term better register firm B with GST, and do not migrate firm A to GST.
 


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