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. Before a dispute arises, the parties find ways to settle disputes between them over the life of the transfer agreement. The parties decide the nature of dispute resolution, which can be either mediation, arbitration or both, and the place and procedure for the resolution process. In order to ensure a sale or transfer of operations by the method of break and enter, a contract of sale is entered by and between the parties, the whole business being transferred to the purchaser on the basis of an ongoing business, i.e. transferred to a current state. A business transfer contract provides an overview of the nature of the transaction, the terms of sale and the transmission of details, insurance and guarantees from the seller and buyer, preconditions, precedents, etc. A business transfer agreement lists assets, commitments, contracts, investments, taxes, intellectual property and other provisions that are the subject of in-depth discussion. The applicant requested in advance the applicability of the exemption, the central tax 12/2017 (rate) of 28.06.2017 relating to ”Business Transfer Agreement” as an ongoing company on the basis of the break and enter. This clause involves the abandonment of one or more commercial enterprises on the seller`s side and the liquidation of them by the buyer`s businesses. The parties must necessarily be natural persons and no artificial person can enter into such an agreement. Even a non-resident is not allowed to do transactions in India without having a head office in the country.
Therefore, in order for a non-resident to initiate a sale of burglaries or even asset acquisitions, he must first create an Indian unit and then use that Indian unit to initiate a business transmission. Another reason why businesses are restructured by the sale of burglaries is that restructurings due to the sale of break-ins only attract stamp taxes on real estate. Burglary and sale will increase performance after integration; Sales contributes to strategic investments and by selling burglaries, the company can benefit from tax and regulatory benefits related to the transaction. In ”Rajeev Bansal and Sudershan Mittal” – [2020 (4) TMI 67 – AUTHORITY FOR ADVANCE RULING, UTTARAKHAND], the applicant is a partnership company involved in the construction of residential/commercial complexes. The company was founded for the construction and sale of a residential/commercial building in Manoharpur, Jwalapur, Hardwar. The applicant has received authorization from the competent authority.