24 August 2008
VAT is applicable on sale of goods whether capital or otherwise. On sale of old vehicles , the seller comes within the purview of the definition of Dealer
25 August 2008
It depends on state to state. Recently there was judgement that VAT shall not be applicable. But the DEpartment sometimes take diferrent stand. But especially in case of cars, if you can show tha Car was originally purhcases after paying VAT, than under Reverse VAT mechanism , VAT can not be charged on reduced Value.
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