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Business Transferring to Son

27 February 2023

Hello experts

If father is running the business and having the stock of about 20 laks, now father wants to take retirement and willing to transfer his business to his son.

1 What is the procedure under GST?

2 How the stock been transfer to son?

awaiting your valuable response

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4 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 27 February 2023

Enter into transfer of business agreement.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 27 February 2023

Form a New Proprietorship of son. Do a sale transaction from father's business to son's business

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 28 February 2023

GST registration in the name of the father (if proprietorship) needs to be applied for cancellation. The stock will have to be shown as sales to the son. The son can obtain GST registration at his discretion subject to the GST provisions.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)