Sale of goodwill applicable ?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2018
DEAR SIR,
MY CLIENT HAS SOLD OUT HIS BUSINESS, HE EARNED SOME MONEY AS GOODWILL OF BUSINESS, MY QUERY IS THAT ON SALE OF GOODWILL - DOES HE HAS TO PAY GST? IF YES AT WHAT RATE? PLEASE ALSO SEND ME CIRCULAR OR REFERENCE FOR THE SAME.
MY CLIENT HAS SOLD OUT HIS BUSINESS, HE EARNED SOME MONEY AS GOODWILL OF BUSINESS, MY QUERY IS THAT ON SALE OF GOODWILL - DOES HE HAS TO PAY GST? IF YES AT WHAT RATE? PLEASE ALSO SEND ME CIRCULAR OR REFERENCE FOR THE SAME.
25 April 2018
Notification No. 10 /2017 – Central Tax dated 28th June, 2017 amended the existing Central Goods and Services Tax Rules, 2017. The Rules may be called Central Goods and Services Tax (Second Amendment) Rules, 2017 and shall come in force on 1st July, 2017. Through this notification, the government notified the final rate schedule under GST.
As per notification, the intangibles, for example, trademarks and goodwill will face a goods and services tax (GST) of 18%. The proposed tax is to be rolled out from July 1, 2017. According Rule 31 read with 51(k) of the Rules, anything not mentioned in the harmonised system nomenclature will face 18%. These are called residual entries in technical sense and the same principle is already in place for GST on services. Since intangibles such as trademarks and goodwill do not find a mention in the schedule they would fall in the category of residual entry
As per notification, the intangibles, for example, trademarks and goodwill will face a goods and services tax (GST) of 18%. The proposed tax is to be rolled out from July 1, 2017. According Rule 31 read with 51(k) of the Rules, anything not mentioned in the harmonised system nomenclature will face 18%. These are called residual entries in technical sense and the same principle is already in place for GST on services. Since intangibles such as trademarks and goodwill do not find a mention in the schedule they would fall in the category of residual entry
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