2 Firm registered in same PAN

ITC / Input 209 views 6 replies

Yash Goyal

Accountant Businessmen

209 Points Joined July 2017

A Person lawyer had created 2 firm, both are changed to Regular to Composition on 16.04.2019, and ITC return also not filed

First Firm : Single Invoice Purchase on 14.02.2019 in Composition of Rs 3.5 Lakh and Sales is NIL till 16.02.2020 (Firm Cancellation Date). Now stock of Rs 3.5 Lakh in the Books is showing. What we can do of this stock ?

Shall we let this firm be closed or filed a sales invoice in second firm (Both have same trade) of same amount and pay tax in first firm and take ITC in Second Firm ?

Please advice me what to do ? A Non Knowledgeable person does these things.

Replies (6)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

Why you are paying tax unnecessary in firm by raising sale for the stock in books .

It's better you cancel the registry for the first firm , Composition dealer are not required to pay tax on Stock remaining on the date of cancellation.

In 2Nd firm take a purchase from First firm as Inward supply from URD. (No RCM Applicable) .