Slump-Sale is sale of an Undertaking as a going concern for a single consideration. However GST didn’t provide the definition of Slump-Sale so we need to move towards Income tax Act, 1961 for Slump-Sale.
As per section 50 B read with Section 2(42C) of Income-tax Act 1961, “slump sale” means transfer of a whole or part of business as a going concern in which all the assets and liabilities of a business are transferred to a purchaser for a lump-sum consideration without assigning values to the individual assets and liabilities.
Silent features of Slump-Sale
(A) The transfer of one or more undertakings.
(B) As a result of the sale.
(C) For a lump sum consideration.
(D) Without values being assigned to the individual assets and liabilities in such sales.
Source Taxguru
