The Advance Ruling Authority found that the applicant intended to sell Sitarganj`s ongoing business with its assets and liabilities, and the sitarganj business in question is live/in service. The buyer bought the Sitarganj company to operate the same type of business. In addition, at present, there is no series of immediately consecutive transfers of this activity. This document can be used if a seller and buyer are preparing to enter into a new contract for the purchase of businesses. If conditions are included in the agreement, these conditions must also be met in order for the transaction to take place. If this is not the case, either party (or, in some cases, both parties) may have the right to withdraw from the agreement. 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”. The main advantage of the company is the land, incomplete apartments built in the countryside and the approved map. On 24.10.2019, a separate certificate of sale for the transfer of housing was executed in accordance with Land law for ₹ 21.80 Crores. Corporate restructuring is a long and complex process, whether financially, technologically or organizationally through merger, merger, agreement, compromise, division, acquisition, acquisition, strategic alliance or Slump Sale, etc. Depending on the sector in which the company operates, other legal standards specific to that sector may also apply. Applicability of the GST to the business transfer agreement In the „Innovative Textile Ltd” case. [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.
Section 2(17) of the Goods and Services Tax Act, 2017 (abbreviated as „Act”) defines the term „transaction” as it is included – This purchase agreement is intended to be used when the owner of a business sells the business to a new owner. The agreement addresses a large number of issues that may be relevant to a sale of businesses, including: under the Income Tax Act 1961, the sale of slump is nothing more than a transfer of one or more businesses as a result of the sale for lump sum consideration, without values being attributed to the various assets and liabilities of those sales. The Business Transfer Agreement is a very important document for the conclusion of business transactions: The different types of restructuring/reorganization of companies can create confusion and so much chaos for the parties to the transaction, but the collapse of the sale is a way out of this problem, because it is not such a long procedure with less compliance and saves the time and costs of the owners…
