Vat liability on transfer of fixed assets

This query is : Resolved

ankur vajpayee (Querist)
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29 July 2012 Brief facts are given as under:-

A Ltd.& B Ltd. are separate companies registered under Co. Act but are under the control of same mgt Company (a foreign 100% holding Co. of both the subsidairies- A Ltd. & B Ltd)
Now A Ltd. has transferred certain tangible fixed assets to B Ltd at consideration equivalent to net block value as appearing in the books of A Ltd.

Both the companies are STPI units.

Is the transaction of sale is liable to VAT on transfer of fixed assets?

ankur vajpayee

ankur vajpayee (Querist)
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29 July 2012 Will the STPI status of both the Indian companies allows VAT exemption on sale of fixed assets? Pls can anyone suggest.