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Regarding query of stock

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kundan singh

99 Points Posted on 03 January 2020

sir there are two brothers who run their business as sole proprietorship separate. can one brother transfer his stock to another brother.

Replies (3)

Quick Summary

This discussion clarifies whether one brother can transfer his stock to another when they run separate sole proprietorship businesses. The answer is yes, but it will be considered a supply under GST regulations. This applies even if the transfer is without payment, as brothers are deemed related persons under GST. Guidance is provided on the GST payment implications for such transfers.

Deepak Gupta

CA Student

15932 Points Posted on 03 January 2020

Yes.

But it will be treated as supply, even if without consideration.

With consideration: Sec. 7(1)(a)

Without consideration: Sec. 7(1)(c) read with Schedule-I
Supply between related persons made in the course or furtherance of business. Brothers will be related persons under GST, since they are members of the same family.