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Transfer of proprietory business to another proprietor

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K P BHANUSHALI

PROPRIETOR

238 Points Posted on 27 April 2012

Friends,

As on 31.3.12, Mr. X is proprietor of M/S. ABC.

From 1.4.12, he wants to transfer his whole business to Mr. Y who is not having any other business. Mr. Y is going to carry on the same trade name alongwith all the assets and liabilities at the same address.

What will be procedure for MVAT registration?

T & R

Replies (1)

sumit

CA final Student

128 Points Posted on 27 April 2012

well...he needs to transfer all the assets at the market value even stock...and pay the same to the department and new assessee who takes up business will need to register as new assessee and take the credit from much purchase... If the sale doesn't involve consideration then transferor has to pay entire tax credit to department and new assessee cannot continue to take any credit of the same...