| Question And Answer | |
|---|---|
| Subject: | Impact of Slump Sale on the Purchaser |
| Category: | Income-Tax |
| Querist: | Ruchi Bhansali |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | slump sale |
| Date: | November 18, 2022 |
The assessee is a LLP engaged in the business of construction having plot of land as a stock in trade. The cost of the said land in the books of the assessee is approximately Rs. 15 crores and the assessee is holding the said land for a period of more than 5 years. The assessee also got plan sanctioned for a housing project to be constructed on the said land.
However, due to some problems in the partners, they have decided to sale the said land along with all rights and liabilities as slump sale to M/s ABC. The net assets of the assessee firm is approx Rs. 12.5 crores and capital is Rs. 2.5 crores. The total consideration to be received as per the slump sale agreement is around Rs. 30 crores.
Issues:
- Whether the above arrangement is justified in law.
- What are the tax implication in the hands of assessee firm
- What is the cost of acquisition in the hands of M/s ABC, whether it is Rs. 30 crores or Rs. 12.5 crores or Rs. 15 crores.
- Is there any liability under GST Act ?
Reply of the Expert is awaited. Please check back later
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