Question ID : 40416

GST and Income tax implication in case of slump sale

Shree Advertisers (here-in-after referred to as ‘the company’) is engaged in the business of selling advertising space or time .The company intends to sell its sole proprietorship business (alongwith assets and liabilities) as a whole and wants to know the tax implications under GST and Income tax Act. 1.Whether GST is applicable on sale of proprietorship business and its assets and liabilities as a whole? 2.What will be the tax implication on sale of assets and liabilities as a whole under Income tax Act , 1961? . 3.Will there be any exemption from capital gains tax if the profit arising from slump sale is reinvested in long term capital asset?

posted by shruti chhalani on Oct 2 2019 12:00AM