Asset Purchase Agreement Stamp Duty

In accordance with Section 62(a) of Schedule 1-A of the West Bengal Stamp Act, the tax rate is 0.25% for the transfer of shares in a public limited company or other entity, with or without consideration, or twenty-five Paise per one hundred rupees of the value of the share. Could you share the current stamp duty under Article 20(4)(i) for mergers in Karnataka. Please also send me the notification if possible. Shareholder agreements or share underwriting agreements often have a indemnification clause and must be stamped accordingly. Do you intend to use the company name at the end of the purchase? If so, the business name should be added to the list of assets to be transferred. 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. 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 – an asset sale has many advantages over a „Share Sale”, for both the buyer and the seller. For example, a seller may be able to crystallize a tax loss to offset a profit, and a buyer has the potential to avoid un crystallized profits in their accounts after closing. Therefore, a buyer should not consider structuring a transaction as an „asset sale”, given that the cost of tax may be lower than it may appear in the first share. .

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