Please Help: GST - TAX LIABILITY
Posted Date : 20-Aug-2020 , 12:08:56 pm | Posted By: BHAVESH
Category :
GST | Answers :
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Comments :
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Whether GST needs to be charged on the assets taken by Retiring Partner on Retirement? |
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24-Sep-2020, 01:24:18 |
| Yes, GST is levied on supply of assets to retiring partner on retirement.
As per explanation (a)(point ii) to section 15 , person shall be deemed to be "related person" if such persons are legally recognised partners in business.
According to section 7(1)(c), supply includes activities specified under schedule I ,made or agreed to be made without consideration
Para 2 of schedule I states supply of goods or services or both between related parties or between distinct person as specified in section 25, when made in course or furtherance of business.
Considering all above provisions, it can be concluded that transfer of asset to partner is covered under the scope of supply and GST shall be levied on such supply.
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