We have to transfer the running business of a partnership firm to a private limited company, and the new company has an outside investor holding 40%. The New company does not want to take over the Debtors, creditors, loans, miscellaneous assets, etc. The new company intends to take over Machinery, Stock, Goodwill, vendor codes, and goodwill. Will this supply be exempt under Notification 12/2017?
Business Asset Transfer Meets Going Concern Criteria, Enabling Tax-Free Transition with Complete Operational Continuity and Investor Participation A partnership firm is transferring selected business assets (machinery, stock, goodwill, vendor codes) to a new private limited company with an external investor, excluding debtors, creditors, and loans. The key legal question is whether this transfer qualifies as a GST-exempt 'going concern' under Notification 12/2017. Experts suggest that if the business continues seamlessly with transferred assets and maintains operational continuity, the transaction can likely be treated as an exempt transfer. (AI Summary)
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