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Conversion of firm

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NARESH KOTHARI

31 Points Posted on 24 May 2021

May I know legal compliance of conversion of partnership firm into proprietor ship firm if one partner deaths remain one is live.????
also know gst in compliance .??

Replies (4)

Quick Summary

This discussion covers the legal and GST compliance requirements when converting a partnership firm into a proprietorship, particularly when one partner has passed away. Key steps include cancelling the firm's GST registration, applying for a new one under the individual's name, and transferring any existing GST credit using form ITC-02. For income tax, the firm's PAN must be surrendered, and capital gains tax may apply to distributed assets.

Sivaramaraju G

Learner

1307 Points Posted on 24 May 2021

GST compliance:- you have to cancel the firm's GST registration and apply for new one on individual's name.

if any credit lies in the electronic credit ledger you can transfer the same to proprietor by filing ITC-02. before transferring credit to proprietor make sure all the credit available on the firm's name claimed by firm.

before transferring to proprietor make sure he must be registered under GST.

Income tax:
You have to surrender the PAN on the name of dissolved firm.

Capital gain shall be chargeable to tax in the hands of firm on distribution of capital asset on dissolution of firm.