Question ID : 36885

ITC reversal in case of conversion of firm to company

A firm is converting into a company. It will transfer stock to the new company. It has substantial ITC on that stock. As per exemption notification, "Services by way of transfer of a going concern" are exempt services. Will this mean that firm will have to reverse ITC? ITC only on expenses of transfer or entire ITC on stock will have to be reversed?

posted by Gaurav S Kenkre on Dec 7 2018 12:00AM