36. Sale of an establishment as a going concern.—

(1) Where a person transfers an establishment in Bangladesh as his running business in the process of an economic activity, such transfer shall be treated as a single supply and such single supply shall not be regarded as a supply made in Bangladesh.

(2) In the matter of applicability of the provisions of sub-section (1) the running business establishment has to be acquired with an intent to keep the economic activity going after its sale is effected and the purchaser has to fully acquire all that is necessary for an uninterrupted management of the economic activity thus transferred.

(3) If a part of a running business establishment is capable of being operated separately‚ such part shall be regarded as a separate economic activity.

(4) In the matter of applicability of the provisions of sub-section (1), for the purposes of working out the supplier’s entitlement to input tax credits,—

(a) the input tax paid on a service taken up for transfer shall be determined in continuation of other activities of the supplier; and

(b) the value of a transfer shall not be included in the proportionate credit ascertained under section 47.

(5) No person shall transfer a running business establishment without making full payment of all payable taxes and arrear dues.

(6) Notwithstanding the provision of sub-section (5), a Commissioner may, subject to such conditions and such limitations as may be prescribed, permit a transfer, if the purchaser submits an unconditional bank guarantee from a scheduled bank for full payment of all payable taxes arrear dues.

(7) Under the provision of sub-section (1), the purchaser shall be treated as the successor to the supplier from the date of the transfer and the supplier shall provide the purchaser with the information necessary to properly comply with the provisions of this Act, and the Board may make such rules as are necessary to make sure that the supplier provides such information.