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CA Intermediate · Taxation · Registration

Kiran Pvt Ltd, a registered regular taxpayer in Pune, ceases to carry on business and transfers it to Anand LLP as a going concern after a sale. Kiran Pvt Ltd wants its registration cancelled. Which statement is correct about the cancellation?

Kiran Pvt Ltd may apply for cancellation on transfer of its business, and the application should give the transferee's details along with the stock and credit position. The registration is not cancelled automatically, since the proper officer passes the order on the application.

  1. ARegistration can be cancelled only by the proper officer and never on the applicant's request
  2. BRegistration is cancelled automatically on the date of sale without any application
  3. COn application, the registration of the transferor may be cancelled, and the application must state the transferee details where the business is transferredCorrect
  4. DCancellation is allowed only after the transferee has taken over all the input tax credit in cash

Explanation

A registered person may apply for cancellation where the business is transferred, including on sale or amalgamation, and the application is made with relevant particulars such as the transferee's details and the stock and credit position. Cancellation is not automatic, and the proper officer acts on the application. Option 1 is wrong since the registered person can apply.

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