Question ID :
44603
Transfer of business of proprietor to other proprietor
If an assessee(mother) wants to transfer her business to her son because of old age,what will be the procedure?tax implications?
Posted by
Tanisha Sagar Boramanikar
on
Jan 31, 2024
Filed Under
DIRECT TAXES
A circular issued by the Central Board of Indirect Taxes and Customs (CBIC) mentioned that the transferee, will be liable to be registered with effect from the date of such transfer, where a business is transferred to another person for any reasons, the applicant will be required to mention the reason to obtain registration form (GST REG-01) to be filed electronically in the common portal.
Posted by
Hari Beldona on
Feb 02, 2024
Answer ID :
85319
While surrendering GST of the mother mention transfer of business . And while applying for GST of Son mention Change in Constitution of Business. It would be better to prepare MOU too.
Posted by
SHUBHAM SONI on
Feb 09, 2024
Answer ID :
85335
As such, there is no concept of transfer of business in income- tax. At best he can acquire under his PAN the whole business. Alternatively, he con join as partner and convert it to partnership then after retirement of partner fresh proprietor ship concern can be continued
Posted by
SURAJ KUMAR CHOUDHARY on
Feb 25, 2024