Firms acquiring stressed assets under insolvency may get tax relief

The relief on this front likely to be provided in the Budget, through GST Council and with cooperation of states

The government is considering giving tax relief to companies that acquire stressed assets under the insolvency process.

Some of such steps like carrying forward tax holidays may come up in the Budget, while the government may approach the goods and services tax (GST) Council for giving relief on the GST.

For tax relief on the stamp duty, states’ cooperation might be sought, sources said. Companies going through the insolvency procedure face tax-related roadblocks, making the resolution process tedious. For example, they pay the GST on sales of assets as well as brands, royalty, etc. 

Earlier, under the Sick Industrial Companies