Simple Business Transfer Agreement In India

Posted: October 8, 2021 by Podwits Administrator in Uncategorized

The Autorité analysed the provisions of the deed of sale, i.e. the business transfer contract and the related provisions of the law. The Preliminary Ruling Authority found that the applicant carried out the activities of construction of residential and commercial complexes and their sale and that the applicant undertaking had been set up in particular for that project. In addition, the applicant sold the building under construction as a whole, with all the assets, and confers on the buyer the rights, including the card approved by the competent authority. The buyer acquired the building/store under construction to operate the same type of business as the buyer himself, who builds and sells residential/commercial complexes. In addition, at present, there is no series of immediately consecutive transfers of this activity. In the case of “Innovative Textile Ltd”. [2019 (4) TMI 1499 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND] is the seller and manufactures textile yarns, fabrics and clothing. The applicant intends to carry out its ongoing activities in the field of the manufacture, marketing and sale of textile yarns and fabrics from the textile factory on land no. B-8, Ph-1, SIDCUL Industrial Park, Sitarganj, Udham Singh Nagar, Uttrakhand to S D D Polytech (P) Ltd, in the form of a business transfer continuing on the basis of Slump Sale as a whole, with all assets and liabilities. The buyer agreed to acquire “Sitarganj Business” as a continuation with all assets and liabilities on the basis of Slump-Sale, under the conditions set out in the transfer contract. Under the Income Tax Act 1961, the Slump Sale is nothing more than a transfer of one or more businesses as a result of the sale for a lump sum consideration, without values being attributed to the various assets and liabilities in such sales.

In the case “Rajeev Bansal and Sudershan Mittal” – [2020 (4) TMI 67 – AUTHORITY FOR ADVANCE RULING, UTTARAKHAND], the applicant is a partnership company engaged in the construction of residential and commercial complexes. The company was founded for the construction and sale of a residential/commercial building in Manoharpur village, Jwalapur, Hardwar. The applicant has had the card approved by the competent authority. The covered area was approximately 1.25 square feet of Lakh. A total carpet area of 85 thousand square feet was built up to the date of transmission. Ronav Infrastructure, who worked in the same company, turned to the applicant to take over this incomplete project in order to continue the construction and sale of the building in question. The applicant concluded an agreement with Ronav Infrastructure for the transfer of the activity as a “continuous operation”. . . .

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