abhishek (CA FINAL) 14 September 2013
Mr X had registered under MVAT for his business and paid VAT and filed returns for first 2 yrs, after that the business became difficult and he stopped all the transactions of business did not file any return and didnot even cancel the registration .
During the period of 2 yrs when business was stopped he transfered the business to someone else, but the business was still closed. now after 2 yrs of no business if the new owner wants to start hi business again, should he cancel the old MVAt registration under the name of Mr X and apply for new Registration under MVAT or can he transfer Mr X registration to his name?
Hari Haran (CA Finalist) 23 September 2013
Please check the below MVAT link
Subsection 8 of Sec 16, mentions clearly that Certificate of Regn is personal to the dealer and not transferable.
However, subsection 9 has some exception in the case of conversion of a status of a dealer. But here the dealer person himself is becoming different. Hence this is covered by subsection 8.
So, the new dealer has to obtain a new registration.