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Himanshu Garg

Himanshu Garg (Querist)
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12 December 2013 What points to be kept in mind while doing audit of Mahindra Finance.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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12 December 2013 What is type of financing activity is done by M/s Mahindra Finance Ltd?.There are three kinds of financing done by financiers.Giving loans,hire purchase and leasing.The last two kinds of finance are liable for VAT taxation.The first type is only financing i.e. giving loans and not taxable under vat.In HP vat is levied at the first sale and in leasing rentals are taxed.Interest charged for defaulters is exempt.Sale of seized assets from defaulters are also taxable again.In leasing,residual property of leased goods has to be sold to someone other than the lessee and vat is to be paid on it.Similarly,in pure financing ,tax has to be collected and paid on the sale of seized goods.All these aspects are to be verified with proper documents and returns.....mjk