Sachin Sahdev asked 4 years ago
REGARDING ITC of transferee
REGARDING ITC of transferee
Dear Expert,
I have a query, can I avail ITC of business which has been closed.
For ex, Company A was raising real estate maintenance billing and Company B was raising rental Invoices.
Now Company A business was transferred to Company C.
Company A (Real estate maintenance business) now merged with Company B (Rental Business).
- Can the transfree company ( Company B- Rental business) utilize the ITC of Company A (Maintenance business) ?
Yes / No, please provide specific provision
Thanks
ConsultEase Administrator answered 4 years ago
In case of a merger, the ITC of transferror can be shifted to the transferee. Section 18(3) reads as:
“Where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed.”
