Transfer of “Going Concern” is Supply of service: AAR
The Authority of Advance Ruling of karnataka has given the ruling on 24 April 2018 about the “Going Concern”. AAR has ruled over the application that the transfer of “Going Concern” is Supply of service. M/s. Rajashri foods Pvt. Ltd. is the applicant and wanted to sell one unit of its business. So the applicant file the application for advance ruling regarding two questions in his mind. Following are the question asked to the AAR:-
- Whether the transaction would amount to supply of goods or supply of services or supply of goods and services ?
- Whether the transaction would cover under sl. no. 2 of the Notification 12/2017-Central Tax(Rate) dated 28 June 2017?
Ruling
- The transaction of transfer of business as a whole of one of the units of the Applicant in the nature of a going concern amounts to supply of Service.
- The transaction of transfer of one of the units of the Applicant as a going concern is covered under sl.No.2 ot the Notification No.12/2017 central Tax (Rate) dated 28.06.20t7 subject to the condition that the
unit is a going concern.
Download the Full Pdf Ruling: RAJASHREE LIMITED RULING