I Partnership firm has filled a tender with a turn over certificate of about 18 Crs or FY 2016-17dult sealed and signed by its CA and as per CA it was signed based on audited Balance sheet. But the sales tax registration, GST Registration , udyog aadhar of the firm has different dates of incorporation in the month of May 2017. I need to know is it legally possible to audit a firm before its existence? A) if a conversion from Sole Proprietorship to Partner ship happens than can the turn over of sole proprietorship be transferred to partnership? And can it be audited before the legal existence .(as the turnover also is quite high 18 Crs beyond every statuary limit for registration as per VAT/GST rules. B) if a conversion from HUF to Partner ship(Karta Becomes a Partner) happens than can the turn over of HUF be transferred to partnership? And can it be audited before the legal existence .(as the turnover also is quite high 18 Crs beyond every statuary limit for registration as per VAT/GST rules.
Hii
New Firm or existing firm can take over business of proprietorship/HUF business but this is not considered as its turnover for taxation purposes, its considered for tendering purpose only , after getting PAN card in the name of firm and turnover after forming firm is only considered for taxation purposes
A partnership firm comes into existence when the partnership deed is prepared. If it has been prepared before, the firm can be audited.
No, turnover cannot be transferred.
Hi,
The partnership is formed on the date of the partnership deed. The turnover of the sole proprietor will be considered till that date, and all sales made by the firm from the date of partnership deed will be considered as the firm's turnover. The turnover cannot be transferred. Audit will apply based on the turnover of the two entities. Similar is the case of HUF.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
