Vat should be charged on sale of fixed Assets

This query is : Resolved

bhavishya (Querist)
Follow

05 December 2008 Vat should be charged on sale of fixed Assets, if at the time of purchase of assets we have not taken credit of sales tax.

whether sales of fixed assets levy of tax

Sheetal Metha

Sheetal Metha (Expert)
Follow

05 December 2008 VAT SHOULD NOT BE CHARGED ON SALE OF FIXED ASSETS -

Vat is charged on the goods which are sold in normal course of business.

According to AS 10 'Fixed Asset' is an asset held with the intention of being used for the purpose of producing or providing services and is not held for the sale in the normal course of business.

Jitender

Jitender (Expert)
Follow

05 December 2008 VAT is chatgeable on sale of fixed assets irrespective of the fact that credit is taken or not.

and as -10 got no implication in it as this is governed by state tax laws.

Upgrade to CAclubindia Pro. Subscribe Now!