26 November 2012
Assessee company have a car in business which got accident and damaged. Assessee company received claim from Insurance company. My query is that whether there is any VAT on Insurance claim?
26 November 2012
In my view VAT is not payable as there is not INTENTION OF Sale.. and hence the test of buyer and seller fails.. my view is supported by case as held in NEWTON CHIKHLI COLLIERIES LTD. Vs THE STATE.. 1952 3 STC 243 (MP). Hope the same clarifies.. however alternate views are adopted by Department based on the theory of Subrogation.
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