SALE OF OLD VEHICLE

This query is : Resolved

VARUN KAKKAR (Querist)
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22 August 2008 SIR

I WANT TO KNOW THAT "WHETHER THE VAT APPLICABLE ON SALE OF OLD VEHICLE" IN SERVICES SECTOR COMPANY.

MY CA HAS SAID THAT VAT WILL BE APPLICABLE ON SALE OF OLD VEHICLE. HOWEVER THE COMPANY DID NOT CHARGE THE VAT ON SALE OF OLD VEHICLES AS YET.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 If old vehicle is their Asset.. then the VAT is not applicable..

VAT is applicable for sale of goods

Srinath

Srinath (Expert)
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24 August 2008 VAT is applicable on sale of goods whether capital or otherwise. On sale of old vehicles , the seller comes within the purview of the definition of Dealer

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Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)
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25 August 2008 It depends on state to state. Recently there was judgement that VAT shall not be applicable. But the DEpartment sometimes take diferrent stand. But especially in case of cars, if you can show tha Car was originally purhcases after paying VAT, than under Reverse VAT mechanism , VAT can not be charged on reduced Value.