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ITC on stock transfer

06 January 2018

If somebody taking stock from a person who is closing his business permanently, so how will be the person who is purchasing stock can claim ITC.

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2 Replies

shubham (ca) (26 Points)
Replied 06 January 2018

Hi Sarthak

If the person had surrender the Registration in sales tax before selling stock then he can't charge the tax in bill
and simultaneously you can not claim ITC

but if he sell goods before surrender then u can claim itc on that goods.

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sarthak bhargava (16 Points)
Replied 06 January 2018

Hi Sir,

Thanks for your valuable response.

If we show the same transactions in the form of purchase, in simple term I will suggest the person who is taking stock that take his stock on his invoice bill so that I can claim ITC on it, I will show the same transaction as purchase in my book?

Should I do this, if yes then please refer section also.