TaxTMI 
TaxTMI 
TaxTMI 
TRANSFER OF ONGOING BUSINESS
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....RANSFER OF ONGOING BUSINESS<br> Query (Issue) Started By: - NILESH PITALE Dated:- 26-2-2024 Last Reply Date:- 10-3-2024 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear expert One of my client is carrying proprietary concern and registered under GST , now he intend to transfer his business to other individual ( other than Relatives), 1) Can he Transfer ? 2) In balance sheet Residen....
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....ce flat is there against which Bank CC Liability also there 3) Already GST Notices are issued and Appeal have been filed 4) is assignment deed required please guide--- Reply By Sadanand Bulbule: The Reply: Dear querist Please refer Notification No.12/2017-Central Tax [Rate] dated 28/06/2017 which specifically exempts "services by way of transfer of a going concern, as a whole or an inde....
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....pendent part there of". Also refer the provisions of Section 17[2] of the GST Act read with Rule 42 of the GST Rules as far as reversal of ineligible ITC on the subject exempt supply is concerned. Reply By Shilpi Jain: The Reply: Business transfer whether can be done or not is not a matter which can be regulated by tax law. So you can proceed with selling if you wish to. In case it is a ru....
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....nning business then no liability if you are transferring such business if the purchaser also would continue such business. Even if there is any case pending you can transfer. Just that in case you do not pay any liability then the purchaser also will be jointly liable to pay the tax. Look at section 85 of CGST Act. Reply By Padmanathan Kollengode: The Reply: Since, factual complexities are invo....
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....lved (such as residential property in business books etc), It would be advisable to consult an expert (lawyer/CA) first and carry out the relevant documentation as required under the Law. As you maybe aware, the GSTIN cannot be transferred as such (so question of notices and appeals getting transferred doesn't arise). However, the business as a whole can be transferred by raising an invoice t....
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....o the transferee. Transfer of business as a going concern would be exempt from GST also. Once business is transferred, you can close the GST registration (subject to ongoing litigation etc). Reply By Shilpi Jain: The Reply: Also have a look at the tax liabilities under Income Tax Act before deciding on the manner of the transfer<br> Discussion Forum - Knowledge Sharing ....