Slump sale FMV

The higher of two values (sub-rule 1). The fair market value is FMV1 (sub-rule 2) or FMV2 (sub-rule 3), whichever is higher.

FMV1 (sub-rule 2) = A + B + C + D − L, where:

• A is the book value of all assets other than jewellery, artistic work, shares, securities and immovable property, as in the books of the undertaking or division, reduced by income-tax paid (less refund claimed) and by any amount shown as an asset that does not represent the value of an asset, including unamortised deferred expenditure;
• B is the open-market price of jewellery and artistic work, based on a registered valuer's report;
• C is the fair market value of shares and securities, determined under rule 57;
• D is the value adopted, assessed or assessable by a Government authority for stamp duty on the immovable property; and
• L is the book value of liabilities of the undertaking or division, excluding paid-up equity capital; amounts set apart for undeclared dividends on preference and equity shares; reserves and surplus (other than those set apart for depreciation), even if negative; provision for taxation beyond the excess stated in the rule; provisions other than for ascertained liabilities; and contingent liabilities other than arrears of dividends on cumulative preference shares.

FMV2 (sub-rule 3) = E + F + G + H, the consideration received or accruing: E monetary consideration; F the fair market value, under rule 57 [Table: Sl. Nos. 1 to 5], of non-monetary consideration in the form of property covered there; G the open-market price, on a registered valuer's report, of other non-monetary consideration that is not immovable property and not covered by rule 57 [Table: Sl. Nos. 1 to 5]; and H the stamp duty value of immovable property received as non-monetary consideration.

Date and definitions (sub-rules 4 and 5). The values are determined on the date of the slump sale, and "valuation date" in rule 57 also means that date. "Artistic work" means archaeological collections, drawings, paintings, sculptures or any work of art; "registered valuer" and "securities" have the meanings in rule 56.