01 November 2011
Hi On Sale active business to new owner, does new owner has to pay VAT on stock?
New owner is changing the name of business. Lets say i am buying existing business and changing the name of company. Do i have to pay VAT? I am from Gujarat. and business is in Gujarat.
03 November 2011
VAT is not raised on the stock it is raised on the transaction and all the transaction done by the seller than liability on all that transaction will raised on the seller not on the buyer.
07 November 2011
Hi thanks for the reply I agree VAT is not raised on stock.
But what happens when i sell my entire business? Does VAT applicable? Or there is special clause where it is considered as transfer of stock? I read somewhere on the net that if Person A selling business to Person B than VAT is not applicable since it sell of business.
09 November 2011
In case of entire business it involve the sale of goods lying in your stock which attract VAT and it can not be treated as transfer because the ownership changed.
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