Slump sale of proprietorship

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3 Points Joined April 2021

Need some advise on slump sale of proprietorship to private limited company by different ownership.what are all the consequences in GST and Imcome tax ?

Whay are all the Entries to be passed in both concerns book of accounts.

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On 16 December 2024 at 07:20 Report
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Master in Accounts & high court Advocate
8821 Points Joined December 2011

A slump sale is a transfer of one or more undertakings for a lump sum consideration, without assigning values to individual assets and liabilities.

Here are the consequences and implications in GST and Income Tax: GST Implications:

1. _Tax Liability_: The transfer of business as a going concern is exempt from GST, provided the transferee is registered under GST.

2. _ITC Reversal_: The proprietorship may need to reverse the input tax credit (ITC) claimed on inputs and input services used for the transferred business.

 3. _GST Registration_: The private limited company must obtain a new GST registration or transfer the existing registration in its name.

Income Tax Implications:

1. _Capital Gains Tax_: The proprietorship may be liable to pay capital gains tax on the transfer of business, as it is considered a transfer of

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On 17 December 2024 at 16:14
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3 Points Joined April 2021

Thank you sirfor your advise on this.

Any form or declaration to be made for GST department

 

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On 17 December 2024 at 19:10


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