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ITC CREDIT RULES UNDER TNVAT ACT FOR TAKE OVER OF A RUNNING CONCERN BY THIRD PARTY OR SON AND RUNNING THE SAME UNDER NEW REGISTRATION
ITC CREDIT UNDER YNVAT ACT
29 Nov 2016 
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Input Tax Credit entitlement where VAT is charged on slump sale transfers of a running concern should be recognized.
State VAT laws do not expressly address VAT on slump sales; case law treats slump sale as a transfer of a running concern and not a regular business transaction, typically placing it outside VAT scope. If VAT is nevertheless charged on such a transfer, the purchaser should be entitled to claim Input Tax Credit for the VAT borne on acquiring the business. (AI Summary)
State VAT laws do not expressly address VAT on slump sales; case law treats slump sale as a transfer of a running concern and not a regular business transaction, typically placing it outside VAT scope. If VAT is nevertheless charged on such a transfer, the purchaser should be entitled to claim Input Tax Credit for the VAT borne on acquiring the business. (AI Summary)