GST Tax Payment Regarding

330 views
User Avatar

proprietor
82 Points Posted on 20 July 2020

Dear Experts,

In a case, my client who was registered under GST died. His wife got registered under GST (with deceased proprietor registration option) and now we have to transfer stock (amounting rs 50 lac with 12% item) of the previous firm (husband's) to the new one (wife's). Now the tax advocate is saying that they need to pay Tax on transfer of stock as there's nothing left as ITC in their Tax kitty.

Is there any way out to avoid that tax payment of rs 600000 (6 Lac).

Please suggest.

 

Thanks in advance.

0 Reply Share Follow
On 20 July 2020 at 13:19 Report
Replies (6)
Quick Summary
A user's client's wife has taken over a GST registration after the proprietor's death. They need to transfer stock worth ₹50 lakh to the new firm and are concerned about paying ₹6 lakh in GST on this transfer, as their tax advocate suggested. Other experts have advised that this transfer might be exempt under Notification 12/2017 CT (R) as a transfer of a going concern, potentially allowing the new entity to claim unused Input Tax Credit (ITC).

User Avatar

1102 Points Posted on 20 July 2020
In case of death of prop. then same is carried forward by legal heir then
sec 18(3) change in ownership you can take benefit of unutillsed ITC by filling form ITC 02(As transfree have to take new registration)before appling cancellation by transferor, then such ITC will available to transfree, Yes on transfer of stock you have to pay tax.
1 Reply
On 20 July 2020 at 15:23
User Avatar

GST Practitioner
55067 Points Posted on 21 July 2020
No not required to pay tax on transfer of stock , it's Exempted vide Notification 12/2017 CT (R)
1 Reply
On 21 July 2020 at 01:30
User Avatar

proprietor
82 Points Posted on 21 July 2020
Dear SIr, thanx for your reply. but in the notification I am unable to see and relate the point of transfer of stock. it's not written anywhere. Please suggest
Reply
On 21 July 2020 at 09:39
User Avatar

GST Practitioner
55067 Points Posted on 21 July 2020

UNDER S.NO.2 OF NOTIFICATION 12/2017 CT (R) " SERVICES BY WAY OF TRANSFER OF A GOING CONCERN, AS A WHOLE OR AN INDEPENDENT PART THEREOF" NIL RATED

THUS TRANSFER OF GOING CONCERN INCLUDE ALL THE ASSETS/LIABILITIES & STOCK OF BUSINESS.

Reply
On 21 July 2020 at 17:24
User Avatar

proprietor
82 Points Posted on 21 July 2020
Dear SIr, your knowledge is awesome. everyone else is saying that we have to pay tax in such a case. but your reference is meaningful. Thanx again. May GOD Bless!
Reply
On 21 July 2020 at 22:37
User Avatar

GST Practitioner
55067 Points Posted on 22 July 2020

DEAR AKASH

THANKS FOR YOUR WORDS

Reply
On 22 July 2020 at 13:42

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Income tax act 2026
  2. Belated Return where Form 10IEA filed this year to
  3. GST Reconciliation Tool (2A vs Books) - looking fo
  4. TDS ON PF FORM 19 WITHDRAWAL
  5. Can a virtual office in Mumbai be used for company
  6. Eway and e invoicing in condition where 4 party ar
  7. Bank balance in ITR-3
  8. INCLUDING PROFITS FROM REIT / INVIT IN SHARE TRADI
  9. Tempsens Instruments IPO GMP Allotment Listing dat
  10. Upload Type - Correction. Not showing in TDS filli

More recent discussions | Post

Related Topics :

Loading