TaxTMI 
TaxTMI 
Transfer of proprietorship business from Mother to Son
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....ransfer of proprietorship business from Mother to Son<br> Query (Issue) Started By: - vaishali raveshiya Dated:- 28-2-2019 Last Reply Date:- 2-3-2019 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Respected members, kindly guide me how to deal with in regards to following matter in Income Tax and GST? A business is carried on in the name of mother will be taken over by/ transfer to her ....
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....son. What procedure to be followed in GST, whether GST is payable ot it is exempt under entry 2 of exemption list? When to take new GST registration no, before surrender of registration no taken in the name of mother or after cancellation of it? Whether ITC can be claimed on closing stoch after transfer of business?? Whats other impact in GST and Income Tax?? Reply By KASTURI SETHI: The Repl....
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....y: 1. You are required to apply for cancellation of registration in Form REG-16 in terms of Section 29 of CGST Act, 2017 read with Rule 20 of CGST Rules, 2017. 2.As per Rule 20, you are to apply for within 30 days after the transfer of business. 3.For availing ITC apply in Form GST ITC-02 as required under Rule 41 of CGST Rules. 4. On the transfer of ongoing business no GST is payable. Such su....
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....pply is exempt. Reply By Ganeshan Kalyani: The Reply: I fully agree with Sri Kasturi Sir's reply. GST is not applicable on the business sold as going on concern. Further new registration under GST is required to be taken by the son. The GST number of mother to be applied for cancellation. However, the authority can verify if any dues or assessment is pending or not before he proceeds sith th....
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....e cancellation procedure. The son is however to apply for the carry forward of input tax credit along the the liability to his new registration number.<br> Discussion Forum - Knowledge Sharing ....