It helps to improve business performance after integration. Therefore, under The Is Act, a BTA that does not demonstrate a transfer of ownership is duly qualified as an agreement under Article 5(c), which requires the execution of the deed of transfer on or before the closing date. While the execution of a transfer instrument is strictly necessary to justify ownership and ownership for the purpose of real estate affirmation, the transfer of ownership of movable property may be effected by surrender of that asset. Where the BTA registers the transfer of movable and immovable property without the need to execute a transmission instrument, the BTA shall be interpreted as a transfer and stamp duty, in accordance with Article 23, which may be levied on that instrument. The Authority considered that the transfer of Sitarganj`s business should be considered as a continuous undertaking and that it was exempt from GST at the time of Communication No 12/2017-Central Tax (rate) of 28.06.2017. On the basis of the above-mentioned legal provisions and the relevant case law, it may be concluded that, where a BTA is available in the form of a sales agreement, the stamp duty referred to in Article 5(c) of Annex I to the Stamps Act and the deed of transfer intended to transfer the assets of the company, whether movable or immovable, is subject to stamp duty: in so far as this applies to the nature of the asset transferred and to the act performed to register that transfer. Therefore, in order to understand the impact of stamp duty on the instant transaction, it is necessary to analyse the nature of the transferred asset and the instrument used to transfer it. In order to improve clarity, we should look at the impact of stamp duty on a BTA under both central and national legislation. It helps to use the taxes and regulatory benefits related to the activity. In accordance with the provisions of the Sale of Goods Act 1930, in conjunction with sections 17 and 18 of the Registration Act 1908, the physical delivery/transfer of movable property constitutes a valid transfer if this is done by receipt of a confirmation or receipt to that effect, recording and/or confirming the transfer of ownership of such movable property.
If the transfer of tangible movable property is carried out by physical delivery, no registration or affixing is necessary. However, stamp duty applies when a document is executed in writing in order to retain a transmission, including for moving tangible objects. A business transfer agreement (“BTA”) is structured in such a way that a global sale of assets and debts from one company to another company takes effect. This is a purchase and transfer agreement that covers the details of the sale of the business and its assets. It describes the type of transfer, the type of sale, the conditions of sale and the details of the transfer….
