Sale of Motor Car owned by Company

This query is : Resolved

Hemanth Kumar (Querist)
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28 April 2009 Dear Sir

Kindly let me know whether the company should charge VAT on sale of Motor car owned by it? If yes at what rate under which clause.

The company is not involved in the business of selling of car it is in real estate business.

The sale is happening in Karnataka and also between the group companies

Regards
Hemanth

CA Devin

CA Devin (Expert)
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28 April 2009 If company is in to the business of selling motor cars than VAT arise.

However, if it is showing motor car as fixed assets and claiming depreciation on the same than no issue of VAT.

taxindiaconnect

taxindiaconnect (Expert)
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28 April 2009 I differ on this and of the view that the seccond had car attracts the VAT in some states, however in some states there is exemption from VAT. Please let us know the state in which the transaction is being entered into.

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