Hi,
Good Morning.
I have a question related to GST.
Does the GST apply to the sale/purchase of pre-existing business or on the sale of 100% shares of company?
If yes then who is Liable to pay GST, seller or purchaser?
Does the GST apply to the sale/purchase of pre-existing business or on the sale of 100% shares of company?
If yes then who is Liable to pay GST, seller or purchaser?
You need to agree on the GST status of the transaction in the contract of sale.
If business is being sold, and all things necessary for conduct of business are being supplied by vendor, and both buyer and seller meet the conditions, then no GST on the basis of supply of business as a going concern.
Alternatively, sale of shares is a financial supply, so no GST.
Does the GST apply to the sale/purchase of pre-existing business or on the sale of 100% shares of company?
If yes then who is Liable to pay GST, seller or purchaser?
You need to agree on the GST status of the transaction in the contract of sale.
If business is being sold, and all things necessary for conduct of business are being supplied by vendor, and both buyer and seller meet the conditions, then no GST on the basis of supply of business as a going concern.
Alternatively, sale of shares is a financial supply, so no GST.
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