04 July 2012
Dear Professionals, Please consider the case: A person dealing in Textile goods and registered under VAT Law of respective state. He is collecting VAT on normal sale and depositing the same to Govt. Now, he sold a capital Good (e.g. Furniture). Whether he would be liable to charge VAT on sale of capital good or can sale without charging VAT on such sale. Please answer who has practical exposure, do not answer on the basis of theoretical knowledge. Thanks in Advance...
04 July 2012
Mr Vikas Kundu, Mr Dayal is correct.Being a registered dealer,when you sell old assets such as vehicles,furniture,machines and even intagible goods like REP licence,exim scrips etc vat liability arises. You have to issue invoices for such sales and collect vat at respective rates and pay along with the vat of other sales...MJK
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