16 March 2011
Dear Colleagues can any body clear me about whether Vat/Sales Tax is attracted on Transfer of Business Assets when there is a conversion of Proprietorship Firm into Partnership Firm, pls give me some case law or section or rule reference Thanks in anticipation
If you transfer business as a whole then VAT would not be applicable. But in that case u need to take some precautions. Make sure that all the assets and Liability get transfer to new entity. Again dont assign individual value to any of the assets.
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