Question ID :
Slump Sale / Biz Transfer agreeement - Stamp paper & registration fees
A business transfer agreement (also known as Slump sale Agreement) -
For transfer of all assets and liabilities FROM a Sole Proprietorship TO a Partnership ON A GOING CONCERN BASIS (that is continuing running the business).
The Sole Proprietorship business contains only Capital and Machinery of Just Rs 20 Lakhs. Nothing else.
Question 1 - Whether this agreement is liable to pay stamp duty and registration fees?
Question 2 - If yes, Under which Serial No of Indian Stamp Act.
Question 3 - If What is the Stamp paper value and what is the registration fees in KERALA?
Answer ID :
May 09, 2022
The business is being sold in slump sale and there are plant and machinery. Therefore it is advisable that the agreement must be registered with the appropriate authority by paying the required value of the stamp duty as per stamp act of the state. If state is not having the stamp act then please refer the Indian Stamp Act. In absence of a registered agreement /deed for business transfer the GST department may raise a question of noncompliance of GST.
For all queries please refer the State Stamp Act in which the property which is being transferred is situated.
CA. JHA SHANKAR KUMAR on
May 22, 2022