Krishna Ashrith

Unlike the shares of a public/private company, partner’s share in the firm cannot be transferred.  Why? The provisions of section 29 of the Indian Partnership Act, 1932 and section 42 of the Limited Liability Partnership Act, 2008 permit a partner to transfer its right to share profit/loss and to receive distribution from the firm.  However, such rights do not result in the assignee becoming a partner in the firm/ LLP and also does not entitle the assignee to participate in the management or conduct of various activities of the firm.  Since the intention is to acquire business, the acquirer would seek to participate in the management and such transfer of interest in sharing profit/loss etc. may not be relevant where the intention is transfer of ownership.  However, you can do it in another way! Hence, to obtain management control, the acquirer should become a partner in the Firm and the transferor/s should retire from the Firm.

 The GST Tax exemption is available for the transactions involved in the transfer of business undertaking as a whole, wherein all the assets and liabilities of the company are transferred by the target company to the acquirer. In the case, where any particular liability or asset not part of the transferred business/group of assets challenges the provision of exemption mentioned above. However, rationale logic can't be given for the same in the act, if any can be easily become another provision have to face the continuous loss of purpose by the parties in the transaction. Hence, this gives raise to the uncertainty in the Mergers and Acquisitions transactions. As due to the above, it is ordinarily suggested to get AAR before the transaction being entered into. Rationale: Question raised on whether the supply is of goods or services or not? Why? To resolve Sec.7 - Scope of Supply In Sri Ram Sahai vs. Commissioner of Sales Tax [(1963) 14 STC 275 (All)] held that ‘business’ is admitte...

The Reserve Bank of India (RBI) has issued various guidelines and regulations for the operation of buy now pay later (BNPL) providers in India. Specific measures that the RBI has taken to regulate the BNPL industry include: Issuing guidelines on the operation of BNPL schemes: The RBI has issued guidelines on the operation of BNPL schemes, which outline the requirements that BNPL providers must follow in order to offer their services to consumers. These guidelines cover areas such as customer onboarding, credit risk assessment, and pricing of BNPL products. Requiring BNPL providers to obtain authorization: BNPL providers in India are required to obtain authorization from the RBI in order to operate. This process involves submitting an application to the RBI, which is then reviewed and approved or rejected based on the RBI's evaluation of the provider's financial stability, business model, and other factors. Supervising BNPL providers: The RBI monitors the activities of BNPL prov...