2.5 The concept of instrument has been defined to include any document that creates, transfers, limits, expands, extinguishes or records a right or liability. Q6. Should stamp duty be paid on transactions or instruments? If a contract does not intend to act as an immediate transfer of the sale of the land, such an instrument must be qualified as an agreement and not transport. An agreement to sell a business with its assets, including the value, would not be a sales contract, but only a contract of sale, whereas the parties intended to enter into force from the date of the agreement at the time of the conclusion of the transaction and, although no actual transport activity was prepared to carry out the proposed sale with regard to goods or personal assets (a sale activity was carried out only with regard to the property). [See final note 8] 1. A sale agreement relating to the transfer of ownership is considered a “transportation” and is marked accordingly. However, the tax paid is set at the time of the transport. Q29. What happens if the instrument is executed on stamps that do not bear the name of one of the performers? The 1958 enterprise agreement for equipment and work related to the transfer of objects in goods pursuant to Section 28 of the Bombay Stamp Act requires executors to disclose and disclose relevant facts and circumstances in the instruments.
This allows us to discover the types of transactions that participate in the instruments, which helps to determine the correct stamp duty to pay on these instruments. The tax should not be paid on the title or position at the top of the instrument, but on the recitals, as stated in the legal acts. However, certain values may be attributed to individual assets or liabilities for the sole purpose of paying stamp duty, registration fees or other similar taxes or royalties. This is because the assets that make up the transaction in connection with a break-in transaction, furniture (physical and intangible property, including intellectual property), real estate (land, buildings, facilities and machinery that are permanently fixed or incorporated into the land), unsecured credits, advances/deposits, human resources and contracts, as well as stamp taxes and registration requirements for each type of asset/liability. To make the transaction effective, the parties generally enter into a business transfer agreement (“BTA” or “agreement”) which records, among other things, the following general conditions: the stamp office determines the market value of the property by referring to an annual price statement (usually known as Stamp Duty Ready Reckoner) which indicated the market values of different properties in Mumbai. The recconer divides the land into different categories such as developed land, undeveloped land, housing units, industrial/office units, businesses, etc., and determines its market value. Section 2 (42C) of the Income Tax Act of 1961 recognizes “Slump-Sale” as a transfer of a “business,” that is, a party or entity or a division of businesses constituting a business activity when it is considered a whole. In other words, Slump Sale means transferring the entire business for a single plan, without assigning value to individual assets and liabilities.
In the context of the break and enter, the business is sold on a “current interest basis” – the transfer of all assets/liabilities, contracts, employees, etc., so that the company can operate as before the sale.