07 July 2011
Dear sir, please let me know the followings..
1.The DEPB licence representing the credit to be adjusted towards the Imports components of exports or to be held for sale is to be reated as an asset or saleable item, since if we sale it at 5% discount, then we have to charge VAT & file it in the VAT Return. so can we show it as a saleable item while in fact it is an asset. so shud it be transferred to other income or somewhere else?/
please do reply at urgent.. kind regards abhiram bharat
07 July 2011
but sir, ehy no VAT? it is the policy of company to sale at 95% and to charge VAT to minimise their loss. secondly, if it is an asset , & the company has sild by charging VAT then it is reflected in vat return please explain in detail. kind regards abhiram
07 July 2011
DEPB is an " Incorporeal" Property. Salmond (Jurisprudence, Eleventh Edition, P. 156) says: "Corporeal property is the right of ownership in material things; incorporeal property is any other proprietary right in rem." Paton in his Text Book of Jurisprudence (Second Edition, p. 408) states: (1) A thing in the material sense which is corporeal and tangible and has an organic or physical unity, e.g., a horse or a block of marble. (2) A thing which is neither material, corporeal, nor tangible but is an element of wealth, e.g., a copyright or a patent...
07 July 2011
sir, u said no vat if ale is inter delhi? why so? this needs to be imposed .. i think.. & if it is shown as an asset, i agree you, then as the company has already charged VAT on sale & also filed VAT return for the same.. im confused.. sorry for inconvinience.. but im nt satisfied, though ur answers are perfect
Vat is charged on goods and not on sale of assets. When you are selling asset you don't need to charge VAT. Since DEPB is an asset as it not treated as goods which are sold in normal business activity so you don't need to charge VAT.
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