continuation of proprietorship firm after death
after the death of proprietor, legal heir of proprietor how to get himself register under GST to continue the proprietorship firm. more
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The deceased proprietor may also have other legal heirs. "Will" to the effect that you have are given the proprietorship is required to avoid any legal complication in future. Or a joint affidavit or note signed by other heirs is to be signed which states that you are given the proprietorship of the business. Other assets of the deceased have been shared by the legal heirs as agreed by them. YES name may be continued but with your PAN details. more
Feb 28
GST is essentially a tax only on commercial transactions. Hence, only those supplies that are in the course or furtherance of business qualify as supply under GST. Hence, any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. Sale of goods or service even as a vocation is a supply under GST. So, as such no clarification issued under (new) rules and regulation, but the stock being inherited by legal heirs, will be out of scope for GST levy, because of no invoicing. ITC claim over the stock is out of question. Secondly, department would not loose any tax, but will get it on final sale from your end. Finally, in case you pay any GST (pay to treasury on behalf of deceased person),........ you will be entitled to claim ITC over it. So, you too do not loose anything !!! more
Feb 28
According to my view the proprietorship firm ends with the proprietor. The GST registration comes to an end accordingly. However the liabilities as on the date of death of the proprietor will have to borne by the legal heirs. You will have to obtain a fresh licence in your name. more
Feb 28
Since registration in GST is PAN based and legal heir will have different PAN than previous proprietor.New registration will be required.(Since you cannot amend PAN even in core fields amendments) more
Feb 28
Prabhat Bolia is correct. Proprietary Firm name can be continued (as a Good Will) but under new registration in name of legal heirs either Partnership Firm or Proprietorship or a Private Company as the case may be depends upon number of legal heirs. more
Feb 28
Sorry for wrong reply. Actually Proprietorship firm cannot be continued as it is PAN based Number and PAN no is deactived on death of a person. The best way is to apply for new registration and then transfer the stock of old proprietorship firm in new firm. more
Feb 28
