Vat on scrap sales

This query is : Resolved 

15 April 2016 Sir,
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on purchases. Now, we propose to sale Scrap which was generated in product manufacturing, shall we pay VAT on scrap sales. Kindly clarify please.

K. Srinivas

16 April 2016 Sir,
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on Purchases. We propose to sale Scrap which was generated in VAT exempted product manufacturing process shall we pay VAT on scrap.
K. Srinivas

16 April 2016 Hi,
With regard to your query, VAT rate applicable on purchase of such input materials is itself applicable even to scrap generated from it.
Apart from VAT you are also required to Collect 1% TCS as per SEC 206 of Income Tax Act 1961.


25 April 2016 you have to pay vat as applicable and also collect TCS @1% on the taxable amount+vat amount



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries