One of my client has Proprietorship Concern has became a Partner consisting family members, so much of stock and ITC credit in proprietary concern can it be transferred to Firm without payment
pls guide how to claim ITC in firm
Yes you can .
As per Section 18(3) R/w rule 41 the ITC can be transfer by filing ITC 02 by Transferor at transferee GSTN & later Transferee will accept the ITC 02 in his GSTN portal , accordingly the credit will be transferred to transferee ECL.
In term of Notification 12/2017 CT (r) , Under s.no.2 , supply of services by way of transfer of going concern is Exempted.
Hence whose business like asset liability & stock can be transfer.
Note : plz do prepare Business Transfer Agreement.
CAclubindia
