take over of business, VAT + CST

[RAM AVTAR]

what is the procedure of take over of registered proprietory business by registered privte limited company.  what will be treatement of vat credit carry forward

Posts / Replies

[CA Rachit Agarwal]

Income Tax Point of view

Transfer of assets/liabilities from proprietory concerns to private limited company would not atttract the capital gain provided the compliance is made for Section 47 clause (xiv).

 

VAT Point of View

The same differs from one State Law to other. As per general common rule VAT Registration Certificate is required to be cancealled and fress registration to be obtained. As regard the VAT credit in some states refund required to be claimed, while other simply make the amendment to the Registration Certificate and VAT credit is allowed.