This article was written by Advocate Shamika Vaidya, who is seeking a degree in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from Lawsikho.com. Here, she listed the stamp duty that is attracted during M&A transactions. In the case of a merger between a subsidiary and a parent company, the stamp duty paid is equal to 1% of the total value of the shares issued or allocated in exchange or the amount of consideration paid, whichever is greater. Section 5(b)(ii) of Schedule 1-A of the West Bengal Stamp Act mentions stamp duty on the agreement or arrangement relating to the sale of shares in a public limited company or other entity of fifty Paise (Rs 0.50) per five thousand rupees (5,000 /-), which is why the rate of stamp duty (0.01%) of the value of the share. Any other document relating to the transaction of shares is a document relating to the sale of shares. If the transfer is linked to the fixed assets, the stamp duty paid is twenty-five rupees for each of the five hundred rupees. The tax varies according to the area of the property. Recourse to Section 50C of the Act Revision of Sales Instruments – Counter-Performance of Subcontracting Acquisition Cost: – The AO and the CIT (A) taxed the capital gains. .
The business transfer agreement is concluded between two parties if they wish to make a slump sale, in which one company intends to sell one business to another in exchange for a lump sum consideration. The seller cannot choose any of the liabilities or assets, the entire transaction is transferred from one party to another with customers, assets, sellers, liabilities and assets, and the value of the derivative counterparty is not based on individual assets, but on the activity as a whole. There are two ways to structure a business transfer agreement – Under Section 62(a) of Schedule 1-A of the West Bengal Stamp Act, the tax rate on the transfer of shares of a public limited company or other entity with or without consideration is 0.25%, or twenty-five Paise for one hundred rupees of the share value. The KS Act departs from both the BS Act and the IS Act, as specific provisions concerning the transfer of movable and immovable property apply in accordance with Article 5 of the KS Act. Article 5(e) of the KS Act imposes stamp duty on an agreement for the sale of immovable property for which partial enforcement is provided. . . .