Merger of a proprietorship into a private limited company

This query is : Resolved

Rupal Sirohiya (Querist)
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16 June 2012 Please let me know if a proprietorship is taken over by an existing Private limited company then VAT registration of the firm will be used or VAT registration of Private limited company will be used after the process of merger

B R Ramesh

B R Ramesh (Expert)
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16 June 2012 Hi

No not possible.

as per VAT act if the status of the business changed then you need to take anew registration.

Hence surrender the old TIN of prop
and apply for new reg

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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16 June 2012 Mr Roopal Sirohiya,
The proprietorship sold out to the Pvt ltd co and it is over. The proprietorship firm has to declare its sale to another co by filing an application to the VAT department and ask for cacellation of RC.The agreement showing details of transferring stock(with value classified into vat rates and assets),arrears,refunds due etc,which are necessary for the buyer and also seller. The prop firm to surrender unused statutory forms and RC.No furhter regn is required for the Pvt ltd firm....MJK

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