25 December 2008
Our's is a software company registered in Karnataka under VAT act. We intend to buy the fixed assets (FURNITURE & FIXTUES)from another software company who is also a dealer under VAT in karnataka.
These assets were purchased way back in 2001 during sales tax regime. Since this is becoming a second sales, the dealer has right to charge VAT? If yes, at what rate they should collect VAT and why?
25 December 2008
BROADLY SPEAKING THERE IS NO SUCH PROVISION OF RESALE / IInd SALE IN VAT REGIME. AS SUCH THE SELLING DEALER WILL CHARGE YOU VAT AT THE PRESCRIBED RATE ON F & F THIS OPINION IS GIVEN AS PER THE ACT APPLICABLE IN MAHARASHTRA BUT I FEEL CERTAIN CONCEOTS UNDER VAT ARE UNIFORM TO ALL STATES PLS CHECK
CAclubindia
