17 November 2007
Your question is certainly not easy to answer. That is why, it is unrespoonded since long. It is fact that, finance Companies are not dealer as generally stood. If we go through the definition of "dealer" as provided under the Act(Assam VAT Act), we find that in following two circumstances the company may be termed as Dealer:- 01. The Company is a Casual Dealer 02. The Company, under any provision of the VAT Act, has been presumed to have made sales or purchase of goods.
Casual Dealer:- I think the Company is not doing business involving buying, selling etc. Hence, it seems that he is not a casual dealer.
Presumed Seller or Purchaser:- I don't think, any such presumptive clause is there, which is applicable on such finance Comapanies.
Accordingly, my personal opinion is that such Companies are out of the puirview of VAT. However, there may be few exceptional cases, where such companies as agent of dealer may be liable to pay tax.
CAclubindia
