Vat on capital assets sold

Dear All,

I am Having Propriety Firm which is purely Export Oriented (STPI Registered) till last Financial Year. Due to STPI Exemption Over I close down that Firm & In that Form I have Some Fixed Assets.

 

Aqua guard

5973.80

Fax Machine

2565.00

Paper Shedder

1846.60

Air Cinditionner

68756.00

Chairs

43441.00

Computers

4285.00

Office Furniture

673198.00

Office Premises

1557739.00

Grand Total

800065.40

 

I want to Transfer these all assets to my Limited Company where I am 97% stake Holder.

So how can I transfer these Assets to Limited Company?

  1. Make Journal Entry  in Proprietary Firm & same in Limited as Capital
  2. I need to make Invoice in Proprietary Firm to Company, pay the Invoice amount from Limited Company.

If case two is ok then whether need to liable for VAT Registration

Replies (1)

no you wil not liable for VAT registration,as its a transfer and not a sale of assets,

2. it depends on how you show the entries,as in this case there is no consideration for transfer ,so simple transfer entries shal be recorded

3. if you make an invoice definitely you wil be liable for registration,so better u  have to be careful

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