Goodwill

This query is : Resolved

Mani Lakshman (Querist)
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05 January 2014 Dear Sir,

I have client who is selling their business, and their last year profit is around Rs 10 lakhs

How should i calculate the goodwill.

What is the rate of the tax should they pay.

is there any exemption where they can invest in.

CA Sanjeev Kumar

CA Sanjeev Kumar (Expert)
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05 January 2014 Send me the last three year financial stat. then I can advise the goodwill value.

Skumar_1986@live.com

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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05 January 2014 Goodwill is to be calculated on agreed basis. Why you want to calculate the goodwill. No doubt it is your matter but I would like to advise that you revalue the assets and claim the capital gain as in goodwill there will be zero value of the assets and on 100% of goodwill you have to pay the normal tax.

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