Vat on transfer of ownership

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Shankar (Querist)
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15 July 2013 Dear sir / madam,

we are a manufacturing unit. we have manufactured dies & tools for our customer to produce goods as per their requirement. now we want to recover cost of dies & tools. Since we are not removing dies & tools out of the factory Excise is not applicable. but to recover the cost we are issuing commercial invoice with VAT. is this correct? Is VAT applicable on transfer of ownership?
Pls. help...

VASANTH D JAGANATH

VASANTH D JAGANATH (Expert)
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24 July 2013 transfer of ownership amounts to transfer of property in goods, there is no need that physical possession of the goods should be transferred for the purpose of levy of tax. levy of vat on such transaction is correct

Shankar

Shankar (Querist)
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24 July 2013 Dear Vansath sir,

Thanks for the reply.
Could u give supportive rule or act?
pl help..

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