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GST on capital withdrawn by partners in form of good
We are winding up a partnership firm doing jewellery business. The firm is not having money to pay to its partners. Jewellery stock value : 1.11 Cr. (Business Stock) Partners capital payable: 1.26 Cr. The partners are ready to accept payment in goods form (Jewellery Stock). In such case, it is not sale. It is drawing of capital by Partners in form of goods. Is GST payable on such closing stock, being given to partners for returning their capital? Does GST department raise any objection for doing so? (Business stock drawn by partners as drawings).
Replies (4)
Quick Summary
If funds are transferred from Partnership bank to partners bank then only there won't be any GST ..
If stock is taken then GST is applicable..
Sell the jewellery to outsiders and withdraw the capital
If stock is taken then GST is applicable..
Sell the jewellery to outsiders and withdraw the capital
Better to sell the jewellery and those funds may be withdrawal
Generate sale / Tax Invoices on partners as per valuation rules and pay GST accordingly.
What if the partners does not talk to each other and also bank is frozen due to non kyc and one partner not signing on KYC form.
Also what if when the gold purchased by partners from customers on which No gst/vat is charged.
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