Break and enter is a way of transferring the business as a « current business » at the same time as debts, i.e. on the basis of an « as is ». As part of this restructuring, companies generally sell their unprofitable businesses and the entire business is sold with all assets and liabilities related to this activity. Empty Sl No. 5 of Communication 12/2017-Zentralsteuer (Rate), from 28.06.2017, the central government grants services an exemption by transferring a company in its entire right or part independent of it. These are considered « services » and fall under Chapter 99. It should be noted that a business transfer contract cannot allow the parties to consider a transfer, but may encourage the parties to make a transfer request. In the case of Avinash Kumar Chauhan/Vijay Krishna Mishra, the Supreme Court made it clear that the sale agreement is not subject to the payment of stamp duty due on a sales file. In re « Innovative Textile Ltd. », [2019 (4) TMI 1499 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND], the applicant is a saleswoman and manufactures textile yarns, fabrics and clothing. The applicant intends to sell its current manufacturing, marketing and sales of textile yarn and fabrics from the Plot No textile factory. B-8, Ph-1 , SIDCUL Industrial Park, Sitarganj, Udham Singh Nagar, Uttrakhand to S D Polytech (P) Ltd in the form of business transfer as a current business on a break-in basis as a whole with all assets and commitments. The buyer has agreed to acquire « Sitarganj Business » as a current business with all assets and liabilities on the basis of the sale in case, on the terms set out in the Business Transfer Agreement.
Advance Ruling Authority found that the applicant intended to sell Sitarganganj`s current business at the same time as all of its assets and liabilities, and that Sitarganj`s business in question is live/operating. The buyer bought the Sitarganj store to handle the same type of business. As at the time, there was no series of instantaneous transfers from the aforementioned transaction. The Authority for Preliminary Decisions has analysed the provisions of the sales activity, i.e. the enterprise delegation agreement and the related provisions of the law. The referring authority found that the applicant carried out the construction and sale of residential and commercial complexes and that the applicant company was created, in particular, for the aforementioned project. In addition, the applicant sold the building as a whole with all the assets and entrusted the rights to the purchaser, including the approved card to the competent authority. The buyer acquired the sub-company to operate the same type of activity as the buyer himself, which deals with the construction of residential/commercial complexes and the sale of residential/commercial complexes and the sale of the sale.
As at the time, there was no series of instantaneous transfers from the aforementioned transaction. When intellectual property is transferred with the company, elements of industrial property law may apply, such as the Trademark Act 1999 or the Copyright Act 1957. This statement was inserted effective on November 15 by the M.P. Act 19 of 1989, 1989.By reason for this provision, so that a legal fiction was created. As a general rule, a sale agreement would not be subject to the payment of stamp duty due for a deed of sale, but in view of the purpose and property, it is intended to reach the legislator who has deemed it necessary to levy stamp duty on a deed of transfer of ownership.