Change of proprietor

ashish (Querist) 18 January 2017 This query is : Resolved
My dad (a owner of a proprietorship business ) is suffering from paralysis , can I (his son) takeover his business without a sale in sales tax ( as sales tax department is saying I have to covert it into patrenship and then dissolve it) plz help, regards

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ashish (Querist) 18 January 2017
Plz help with your valuable suggestions

Guest (Expert) 18 January 2017
There are Certain formalities to be complied with like Sale Deed of Transfer of Ownership.Informations to Lenders if any and clients/Suppliers and also to comply the formalities and Procedures in the Concerned Banks etc.Better Seek the Help of a Local Good Senior Advocate.

rajeev sharma (Expert) 18 January 2017
Any trans fer of assets in favour of one person by other require a transfer deed.If you go for this first you should have enough funds to pay for purchases and to pay to creditors if they are not ready to transfer their loan in your favour.
Your father owes the business so best course is that get a power of attorney in your name to manage the affairs of the firm and get a will executed in your favour transferring the business in your name after his death . In this way you will not only save money but hassles of many government depts also

shivam...... (Expert) 18 January 2017
you may choose either option as suggested by Mr Raj Kumar or Rajeev Sharma, but in either case please take certificate from the doctor that while executing transfer deed and/or Power of attorney your father was in fit state of mind and was able to understand the transaction, as he is reported to be suffering from pyrolysis

Rajendra K Goyal (Expert) 18 January 2017
You may enter into partnership as your father is not able to look into the business.

Your father can sell / gift the business to you.

Ms.Usha Kapoor (Expert) 19 January 2017
Agree with experts.

ramaraju ramaiah (Expert) 30 January 2017
it is better to execute a partnership deed yourself and your father with 99np and 01np share and take fresh RC in the same name and also closing stock transferred easily to partnership firm without paying tax as stock in trade

Change of proprietor

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