11 October 2008
MR. A was running ice cream parlour. He sold the business to Mr. X in September 2007. He colleted Rs.85,000/- of Maharashtra VAT on total sale price of business and issued a tax invoice to that effect.
Mr. X was not registered under MVAT as on the date of sale. He took registration in the month of february only after he completed sale of Rs.5 Lacs.
In the above case can Rs.85,000/- vat paid on purchase of business can be claimed as set off. In my opinion since the dealer was not registered at that time he can not claim the set off.
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