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Proprietary concern

Nehal Thakkar (STUDENT) (46 Points)

11 November 2013

A proprietary firm cmenced business in June 2010. It was liable to take the vat no. Bt due to sum reasons cudnt, and continued business in name of a relative firm, bt received sale proceeds in its accounts. Now since there are no biils in its name and neither has it obtained VAT no. for 2 consecutive yrs...how should I move ahead with its Accounts?

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7 Replies

Ankit (CA, CS) (3064 Points)
Replied 11 November 2013

Nehal,

if the business is done in someone else's name, there is no question of you recording the transactions. that person under whose name the business has been done will have to record the same and pay the relevant tax on the same

Nehal Thakkar (STUDENT) (46 Points)
Replied 11 November 2013

Originally posted by : Nehal Thakkar
	A proprietary firm cmenced business in June 2010. It was liable to take the vat no. Bt due to sum reasons cudnt, and continued business in name of a relative firm, bt received sale proceeds in its accounts. Now since there are no biils in its name and neither has it obtained VAT no. for 2 consecutive yrs...how should I move ahead with its Accounts?

Thanks for ur reply Ankit. But the company is receiving the receipts in its name..i.e in its Bank Account, so what is to be done??

Ankit (CA, CS) (3064 Points)
Replied 11 November 2013

if that is so the case then, you have no option but to now go and declare the same to the vat authorities, pay the relevant penalty and finish off the matter.

by the way, is the a case of MVAT??

Nehal Thakkar (STUDENT) (46 Points)
Replied 11 November 2013

Yes it is relating to MVAT...!!

Ya i guess thats the only option left..Vl need to enquire with the authorities what step is to be taken ahead. As returns need to be filed, because the firm is need of a Bank Loan, which requires them to submit returns for atleast 2 yrs.