XYZ (Proprietor) is converting his business from Proprietor to Private Limited Company as a ‘Going Concern’. As per Notification No. 12/2017, there is un - conditional exemption from payment of GST for Services by way of transfer of a going concern, as a whole or an independent part thereof.
1) Whether XYZ is required to prepare ‘Bill of Supply’ at the time of transfer of business?
2) What should be the value to be shown on the ‘Bill of Supply’ since no consideration is received by XYZ?
XYZ Converts to Private Limited Company: Bill of Supply Required, Value Based on Book Value per Notification No. 12/2017 A proprietor, XYZ, is converting a business into a private limited company as a 'going concern,' exempt from GST under Notification No. 12/2017. Queries arose about whether a 'Bill of Supply' is needed and what value to show, given no consideration is received. Responses suggest that a 'Bill of Supply' is required, with the value based on the company's book value. The transfer is treated as a singular service under GST, and the transfer of unutilized Input Tax Credit (ITC) is permissible. Valuation should consider more than just book assets and liabilities, including factors like goodwill. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
