Sale of fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2011 we r authorised dealers of Automobile but due to heavy loss we r almost closed all its activities in last year still we have pending with us some spare parts and tools which is also reflected in balance sheet (Fixed assets) now we r selling all the parts and tools and machinary to another dealer.
i have query that sale of such fixed assets is chargebale by full rate of Tax(ie.12.5%)

and apart from that some of tools are purchase from local dealers.whether set off of such local purchase can be claimed at time of sale of such fixed assets.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

24 November 2011 Mr. Author,
Such sales of left out parts,tools machinery,even if they are assets,are liable for VAT.If the total value of such sales falls below the minimum required for registration, then you can claim exemption on those sales,if they are all locally procured goods.For interstate purchaed goods there is no limit.You have to pay vat on any sales of outside the state goods.On
sales of local parts and machineries you can avail input credit....MJK

Message likes : 1 times