SLUMP SALE

In the instant case, the implications for slump sale would be as follows.

• Income Tax - Sales consideration to be reduced by net worth. For Net worth computation, immovable property to be considered at Circle rates (so fixed assets valuation may materially alter)
• VAT - no Vat applicablity, Already number of decisions that 'business' per se is not goods if sold as going concern
• Stamp duty - Some states require payment of duty on business sale under the entry of "conveyance". So, do check the same also (UP Stamp authorities have considered business transfer under scheme of demerger as conveyance and chargeable to duty)

Let me know if you require any further clarifications.

thanks and regards

Akhil Bansal., C.A