Divestiture and asset sales are strategic business moves often undertaken to raise capital, streamline operations, or exit non-core business verticals. These transactions require deep financial, legal, and tax expertise, and that’s where Chartered Accountants (CAs) come in.
At TAXAJ, we offer specialized CA-driven support for businesses undertaking asset sales, business divestments, or restructuring deals.
Divestiture refers to the partial or full sale of a business unit, subsidiary, or asset by a company to:
Unlock capital
Improve operational focus
Comply with regulatory conditions
Exit underperforming or non-core segments
Prepare for merger or acquisition
This may involve selling:
Tangible assets (plants, machinery, inventory)
Intangible assets (IP, brand, goodwill)
Subsidiary companies or specific divisions
Real estate or land holdings
A CA ensures that:
The transaction is tax-efficient and fully compliant
All regulatory filings are accurate and timely
Business valuation is fairly done
Capital gains are optimally planned
Transfer is accounted for correctly in books
No hidden liabilities or tax risks affect your business
✅ Business valuation under DCF, NAV, or comparative methods
✅ Fair market valuation for slump sale or asset sale
✅ Review of books, contracts, assets and liabilities
✅ Advising on Slump Sale vs Itemized Asset Sale
✅ Review of Sections 50B, 43CA, 56(2)(x) for tax planning
✅ GST implications and input credit transition
✅ Stamp duty planning and state-wise cost optimization
✅ Correct computation of short-term and long-term gains
✅ Claiming exemptions under Section 54EC/54F (if eligible)
✅ Deferment of capital gains tax with reinvestment strategies
✅ Filing Form 3CD and 3CA/3CB for audit reporting
✅ Updating ROC and MCA records (for sale of undertaking)
✅ FEMA & RBI compliance for foreign buyers
✅ Assistance with documentation like Business Transfer Agreements, NDAs, and Share Purchase Agreements
✅ Adjustments in books post asset transfer
✅ Treatment of goodwill or capital reserve
✅ Reporting impact on P&L and balance sheet
✅ Coordinating with internal and statutory auditors
| 🚩 Criteria | 📦 Asset Sale | 🔄 Slump Sale |
|---|---|---|
| Sale Type | Individual assets/liabilities | Entire undertaking as a going concern |
| Valuation | Separate for each asset | Lump-sum consideration |
| Taxation | Based on individual asset type | Covered under Section 50B (capital gains) |
| Complexity | Higher compliance & documentation | Simpler for strategic exits |
TAXAJ helps you choose the most tax-efficient route based on your transaction goals.
SMEs selling a product line or business unit
Real estate developers divesting commercial properties
Startups exiting non-core verticals or selling IP
Companies merging and carving out verticals
Family-owned businesses restructuring assets
✔️ Expertise in direct tax, GST, FEMA, and Companies Act
✔️ Cross-functional team: CAs, CS, and legal professionals
✔️ Experience in both domestic and cross-border asset sales
✔️ Transparent pricing and confidential execution
✔️ Strong focus on compliance and post-deal audit support
Divestiture is a strategic decision, but executing it without financial, tax, and legal precision can lead to massive risk exposure. Whether it’s a slump sale, asset transfer, or sale of a business division, TAXAJ’s expert Chartered Accountants ensure your transaction is compliant, tax-efficient, and successful from start to finish.
📞 Contact TAXAJ today for expert divestiture advisory and a customized exit strategy that protects your interests.