When a business changes its legal structure—from a proprietorship to a partnership—the underlying legal entity also changes. Since GST registration is issued to a specific legal entity, the GST number linked to your proprietorship cannot be transferred to the new partnership. What This Means: New LeRead more
When a business changes its legal structure—from a proprietorship to a partnership—the underlying legal entity also changes. Since GST registration is issued to a specific legal entity, the GST number linked to your proprietorship cannot be transferred to the new partnership.
What This Means:
-
New Legal Entity:
A proprietorship is treated as an extension of the owner, while a partnership is a distinct legal entity with its own identity. -
New GST Registration Required:
Since the legal entity has changed, you must cancel your existing GST registration for the proprietorship and apply for a new GST registration in the name of the partnership. -
Compliance:
It’s important to complete the new registration process to ensure continued compliance with GST laws and avoid any disruptions in your business operations.
Final Takeaway:
No, you cannot use the same GST number when transitioning from a proprietorship to a partnership. A new GST registration is mandatory for the new partnership entity.
See less
If you receive any amount from your employer due to termination of employment, its taxability depends on the nature of the payment. Here’s how it is treated under the Income Tax Act, 1961: 1. Compensation for Voluntary Retirement (VRS) or Retrenchment Exempt up to ₹5,00,000 under Section 10(10C) ifRead more
If you receive any amount from your employer due to termination of employment, its taxability depends on the nature of the payment. Here’s how it is treated under the Income Tax Act, 1961:
1. Compensation for Voluntary Retirement (VRS) or Retrenchment
2. Gratuity
3. Leave Encashment
4. Retrenchment Compensation
5. Severance Pay or Ex-Gratia Compensation
6. Notice Pay & Bonus
Conclusion
While certain termination benefits enjoy tax exemptions, others are fully taxable. To minimize tax liability, one can explore deductions under Section 89 (Relief for Salary Arrears & Compensation) or invest in tax-saving instruments.
See less