Slump Sale Profits Taxed as Capital Gains Under Section 50B; GST Nil Rate for 'Going Concern' Transfers
A slump sale involves transferring an entire business undertaking or division for a lump sum without assigning values to individual assets and liabilities. Under Section 50B, the profits from such sales are taxed as capital gains, with the net worth of the undertaking considered the cost of acquisition. The fair market value (FMV) of the assets is determined using specific rules, and the transfer is subject to GST as a 'transfer as a going concern,' attracting a nil GST rate. Assessees must provide an accountant's report certifying the net worth calculation, and FMV is calculated using prescribed formulas considering both monetary and non-monetary considerations.
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