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TMI BlogSection 50B - Slump SaleX X X X Extracts X X X X X X X X Extracts X X X X ..... ts and shall be deemed to be the income of the previous year in which the transfer took place:- Provided that any profits or gains arising from the transfer under the slump sale of any capital asset being one or more undertakings owned and held by an assessee for not more than thirty-six months immediately preceding the date of its transfer shall be deemed to be the capital gains arising from the transfer of short-term capital assets. (2) In relation to capital assets being an undertaking or division transferred by way of such slump sale - (i) the net worth of the undertaking or the division, as the case may be, shall be deemed to be the cost of acquisition and the cost of improvement for the purposes of sections 48 and 49 and no regard sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital asset being goodwill of a business or profession, which has not been acquired by the assessee by purchase from a previous owner, nil; (b) in the case of capital assets in respect of which the whole of the expenditure has been allowed or is allowable as a deduction under section 35AD , nil; and (c) in the case of other assets, the book value of such assets TAXATION UNDER GST The basis of taxation under the Goods and Services Tax Act revolves around supply . A slump sale would also be a supply and hence fall under the purview of GST. The supply would be in the nature of transfer as a going concern and such a transfer attracts nil rate of GST. Rule 11UAE : Computation of FMV of Capital Asset for the purpose of section 50B (1) For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to such undertaking or division, namely: - (i) the paid-up capital in respect of equity shares; (ii) the amount set apart for payment of dividends on preference shares and equity shares where such dividends have not been declared before the date of transfer at a general body meeting of the company; (iii) reserves and surplus, by whatever name called, even if the resulting figure is negative, other than those set apart towards depreciation; (iv) any amount representing provision for taxation, other than amount of income-tax paid, if any, less the amount of income-tax claimed as refund, if any, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto; (v) any am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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