i am proprietor of a business.i have a car in the business as fixed assets.Now i want to sell the car. but i want to show withdraw of the car(fixed assets) from business. i want to show the transaction as below.
cr to car dr to capital
can i do this should i pay vat on the sale of the car
17 October 2011
Mr M Rathod, Whenever you sell an asset you have to collect VAT on it and pay the balance of of VAT left after deducting the amount paid while buying it.As the resale value is less than the original you may even get refund out of it. MJK
CAclubindia
