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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

Answer ID : 85290

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