Friends,
One of my client was running business as proprietorship and registered in Karnataka VAT. He has expired & now his family members planning to take over proprietorship and incorporate as Partnership Firm. Since VAT registration cannot be trasferred from Proprietorship to Partnership we are surrendering the registration & planning to obtain new registration number for Partnership. Now the question is,
1. On the date of take over there is stock of Rs. 14,00,000/- in the Proprietorship. Is it should be treated as sale & VAT should be charged?
2. If stock is treated as sale, what about all other Fixed Assets?
3. Can Partnership Firm claim Input tax credit of VAT Paid on stock?
Kindly give your opinions.
CAclubindia
