I have a proprietorship and now want to transfer it to other party.
I have been filing GST returns, income tax returns and even Income Tax audit was done.
Under following situations how to treat selling of individual business:
What will be the Income Tax and GST implications on selling of individual/proprietorship business?
Sole Proprietorship Business and Individual are one of the same.
GST and Income Tax is PAN Based Registration. There is no such provision under GST Law and Income Tax to Transfer of Individual Sole Proprietor Ship Business to another person.
Further under Income Tax Act we have provision of Slump Sale ( Sale of an on going business to another person) refer Delhi High Court Judgement in the case of Triune Project Private Limited Vs DCIT.
Further under GST Laws definition of supply is much more wider and it may cover Slump Sale , but no such clarification as of now.
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