Our client is a Pharma-Pvt. Ltd.Co. they have sold motorcar & has charged VAT to buyer,so they will have to pay this collected VAT to dept but in the same year they also have purchased a new car on which they have paid VAT as also Entry Tax on this car can we claim set off of this payments from vat collected on car sale Please guide Thanks
24 August 2013
U/r. 54 (1) no set off is available on passenger car if it is not used in business of hiring. On purchase seller will charge VAT but on purchase no setoff is available.
CAclubindia
