Slump sale means transfer of a whole or a part of undertaking of a business as a going concern as a result of the sale for a lumpsum consideration without individual values being assigned to assets and liabilities. If the value is assigned to land for stamp duty purpose, then too it will qualify as slump sale
In simple words, to qualify as a slump sale, following conditions must be satisfied:
- Business is sold as a whole
- Business is sold as a going concern
- Individual item-wise values are not given to the assets transferred
- Sale is made for a lumpsum consideration
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