CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
Rammi_RP Rawat (Accountant ) 14 September 2019
Convert the proprietorship firm into a Partnership firm, firstly, it is required to incorporate a partnership firm and then arrange for PAN.Once PAN of partnership firm received, apply for registration under GST. Once GST number successfully generated, it is required to open a current account of the firm. After this, complete the process of seeding such Bank account details to GST registration.
Now finally, in proprietary firm, file all GST Returns and pay pending taxes.
Once all tax dues paid off, apply for cancellation of GST number giving reasons as ‘Change in legal Structure of firm’. It will also ask to enter GST number of new Partnership firm.
After this, transfer all assets and liabilities into partnership firm as sale of business by proprietor to partnership firm. Under GST laws, it has been provided that in case of such conversion, there is no need to pay GST on such transfer of assets from one entity to another.