Vat on sale of machinery

This query is : Resolved

Ravishanker (Querist)
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29 January 2014 Hello,

A Pvt Ltd Company, unregistered dealer had purchased Plant & Machinery paying VAT 12.5% in Maharashtra and CST 5% for purchase from outside Maharashtra. No set-off availed.

Now, the entire machinery is being sold in Maharashtra. The Company is still unregistered dealer. Is there any liability for VAT for the second sale.

Look for a proper advise.

Thanks in Advance.

Ravishankar.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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30 January 2014 As mentioned that the company is a unregistered dealer and purchased machinery paying relavent state or central taxes. The input tax benefit is anyways not eligible since the company being a unregistered dealer. As to VAT payable on sale of machinery, you shall have to verify should the value of sale of machinery exceeds the basic registration limit in your state. Should it exceed you shall have to discharge the tax. If the value is below the registration limit, you may not have to pay the tax