27 May 2012
A service sector company has sold used fixed assets (Furniure and Fixtures - not scrap) of Rs. 1.2 Cr.in maharastra. Whethe VAT is applicable on such transaction or not. Such company is not registered dealer of VAT, not havin TIN no.
sale of Fixed assets is also taxable item and falls for registration and audit under MVAT Act,2002.It will not make diff. if you are selling as Scrap or as Goods.
Once it is covered under section 2 in defi. of Sales it will be liable to tax.
CAclubindia
