Dear Experts,
I request your opinion in the following case:
An existing closely held private company (trading entity) of a family is acquiring a running proprietorship concern of father. Company shall also carry on the business of the Proprietorship along with its current trading activities. The proprietorship concern has some stock and plant and machinery but no immovable assets like land or building. I would like to know the tax implications and in particular replies to following issues which I have come across:
1. Will this transaction be covered under slump sale ? How to avoid it ?
2. Is sales tax payable on stock or plant and machinery ? Will plant and machinery be taken as movable prolerty or immovable property ?
3. What will be the treatment of trademarks registered by Proprietorship in its name.
4. Also proprietorship has already given consent for the use of brand and trademark to the Company in past.
Please reply at the earliest.....Thanks in advance.
