First Stage Dealer - Change In Constitution from Proprietor to partnership

[fenil sanghvi]

I have one query regarding consequences / procedure to be followed in case of change in constitution of first stage dealer from Proprietorship to partnership.

The case is proprietor is already running business as a first stage dealer and now has transferred his all asset and liability to newly formed partnership firm in which he is also a partner.

My query is in such a situation how can proprietor transferred closing stock and balance of excise to the partnership firm?

Plz guide me.

mail id [email protected]

[MUKUND THAKKAR]

just change your registration details by adding the all partner name and submitted to dept. and also intimate the concern range / division along with the copy of changes. if any changes in name follow the same procedure.

[KASTURI SETHI]

Sh.Fenil Sanghvi Ji,

In your case PAN will be changed. If PAN is changed new registration no. will be issued. Go through Point No. 9 & 10 of Notification No.7/15-CE(NT) dated 1.3.15 which is appended below:-

(9) Transfer of Business or acquisition of factory : Where a registered person transfers his business to another person, the transferee shall get himself registered afresh. Where an applicant has acquired an old factory from a Bank or a Financial Institution, he shall get himself registered afresh.

(10) Change in the Constitution : Where a registered person is a firm or a company or association of persons, then in the event of any change in the constitution of the firm leading to change in PAN, he shall get himself registered afresh. In other cases of change in constitution of business, where there is no change in PAN, the same shall be intimated to the jurisdictional Central Excise Officer within thirty days of such change by way of amendment to the registration details to be carried out online in website www.aces.gov.in and this will not result in any change in the registration number.

Further first clear all the goods and bring the stock to NIL and, thereafter, apply for afresh registration. This is the best way.

 

[Ganeshan Kalyani]

Sir, in nutshell if there is change in PAN then new excise registration number is required to be taken and if not then by the certificate can be amended with the new details. Thanks.

[fenil sanghvi]

But sir, Issue is that there is few slow moving stock having much more value. And they want to transfer the same to the new organization i.e. partnership firm. Hence, can they transfer the stock without raising excise invoice and just intimating the concerned officer regarding change in constitution?

[KASTURI SETHI]

Invoice has to be raised. No excisable goods can be removed/transferred from a factory or warehouse or depot etc. without invoice in terms of Rule 11 of CE Rules,2002.

[Ganeshan Kalyani]

Sir, I agree with Sri Kasturi Sir's view, without raising excise invoice removal of goods is not permissible as per rule. Thanks.

AI Summary

Change in business constitution requires fresh or amended excise registration and invoices for any transfer of stock.
Where a proprietorship converts to a partnership, a change in PAN requires obtaining a fresh registration, while no PAN change requires online intimation and amendment of registration within thirty days. Physical transfer of excisable stock to the new firm cannot occur without raising an excise invoice in accordance with the rules; mere intimation to the officer does not permit removal of goods.