transfer of proprietorship
rahul
(Querist) 01 October 2015
This query is : Resolved
Mr A is owner of sole proprietorship firm ABC , he transfer proprietorship to his nephew by way of an undertaking before his death. Nephew applies to sales tax department for change in proprietorship by submitting original undertaking and obtains a receipt from department . Nephew files returns for 12 years thereafter and gets assessment orders from department time to time. .After 12 years Mr. A's son files suit for claiming proprietorship of ABC firm.. Pls advice on legal status .
K.S.Srinivas
(Expert) 01 October 2015
Since the property is transferred and is in your possession for the past 12 years, you can defend your case effectively. Consult a Lawyer along with all documents and engage him.
Rajendra K Goyal
(Expert) 01 October 2015
Nephew has a good case in his favor, he can defend the case on the basis of existing facts.
Hemant Agarwal
(Expert) 01 October 2015
1. Transfer of "proprietorship firm" is possible ONLY thru a proper Agreement and NOT thru an undertaking. The agreement specifies transfer conditions, good-will, valuations, assets and liabilities, movable and immovable properties and so on .... The Agreement should be Stamp Duty paid alongwith registration fee, else the agreement (undertaking) is null & void.
2. Here it seems that everything was done in a irregular manner and such this will remain disputable. Transfer of "Sales Tax" registration WILL NOT give any "legality" .OR. confer any rights, for such transfer of the firm.
Keep Smiling .... Hemant Agarwal
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