MAYUR MINAJGI (54 Points)
15 April 2023
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 15 April 2023
Although this is not a bank account where you can transfer funds from one firm to another, you can make an invoice on the name of the partnership firm.
Uma Srilekha Gadepalli
(255 Points)
Replied 15 April 2023
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 April 2023
MAYUR MINAJGI
(54 Points)
Replied 16 April 2023
https://cleartax.in/s/itc-02-filing-gst-portal-guide
MAYUR MINAJGI
(54 Points)
Replied 16 April 2023
https://cleartax.in/s/itc-02-filing-gst-portal-guide
MAYUR MINAJGI
(54 Points)
Replied 16 April 2023
https://cleartax.in/s/itc-02-filing-gst-portal-guide
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 17 April 2023
If your sole proprietorship business merges with your partnership firm then it is only possible. You can take refund if you don't have any stock with you & the itc still has credit with you or either you may transfer your itc ,merge your business with others.
Pranjal Gupta
(141 Points)
Replied 17 April 2023
When a proprietorship firm is converted into a partnership firm and one of the partners of the new partnership firm is the proprietor of the old firm, the Input Tax Credit (ITC) of the old firm can be transferred to the new partnership firm. The following is the procedure to transfer ITC:
The proprietorship firm should file a final GST return in Form GSTR-3B, declaring the stock of goods and ITC as on the date of conversion.
The proprietorship firm should also file a declaration in Form GST CMP-02, intimating the conversion of the proprietorship firm into a partnership firm and the details of the partners.
The partnership firm should apply for a new GST registration, as the registration of the proprietorship firm will be cancelled upon conversion.
The partnership firm should file an application in Form GST REG-01, seeking the transfer of ITC from the proprietorship firm to the partnership firm.
The partnership firm should also file an intimation in Form GST ITC-01, declaring the ITC that is being transferred from the old firm to the new firm.
The ITC transferred will be credited to the electronic credit ledger of the partnership firm and can be utilized for payment of GST liabilities.
It is important to note that the transfer of ITC can be done only if the old and new entities have the same PAN. Also, the transfer of ITC should be done within the prescribed time limit as per the GST Act. It is advisable to consult a tax professional for proper guidance on the transfer of ITC in specific cases.
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