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Stock as gift
are there any tax consequences if brother A gives stock to Brother B without consideration for business commencement? can it be written as gift? if written so, what are consequences?
Replies (7)
As per Schedule I (2) of the CGST act 2017 , supply of goods or services to related party or distinct person made in course of furtherance Business even without consideration will be treated as supply and GST applicable .
confirm with others also.
Yes, on such sales, Gst paid by brother A & brother B shall pay Gst on same. I want to know tax consequences
I not getting you point , because GST applicable is Tax consiqence
I want to know income tax consequences
It should be shown as part of turnover and tax should be paid. however the same is not taxable in the hands of B
Can B show that as purchases? in that case his profit shall be reduced and tax paid will be less?
Here the point is at what value you do you consider the stock in your books.But any way, will add G.P while making sale and pay tax on it , hence you can treat as your expense.
You write off the balance of your brother to capital.
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