SANJAY (CHARTERED ACCOUNTANTS) (943 Points)
27 July 2011Can anybody answer my question? Its urgent!!!
My question is:
If a company is selling its fixed assets (specially Vehicles), Whether Sales Tax is applicable on such sales? and if applicable then at what rate we charge from purchaser??
Please reply soon..
Thanks in advance!!!
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 27 July 2011
Sir, Local VAT will be applicable, if company has availed vat input credit at the time of purchase of same assets.
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 27 July 2011
No company have not claimed vat input earlier.. Now what should do?
Kalpesh Mutha
(B.com, F.C.A, C.S)
(239 Points)
Replied 27 July 2011
Sales tax will aply.
Even though the company has not availed any input credit earlier, it has to charge sales tax at the time of sale of fixed assets.
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 27 July 2011
Thanks for reply... At what rate we should charge?? Please reply soon?
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 27 July 2011
Where a dealer sells capital goods which he has used since the time of purchase exclusively for purposes other than making non-taxed sale of goods, and has not claimed a tax credit in respect of such capital goods under section 9, the sale of such capital goods shall be exempt from tax.
Source: https://delhi.gov.in/wps/wcm/connect/doit_tradeandtaxes/TradeAndTaxes/Home/Acts/
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 27 July 2011
Sanjay Sir & kalpesh Sir, I hope now ur doubt is clear.
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 27 July 2011
But Mr. vikas i m talking about specially for vehicles used in company. Company is now selling its vehicles most of them are cars. How can i conclude that it can be used for sale of taxed goods.??
And again the company is selling non taxable goods.. What should be the answer now??
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 27 July 2011
Sir, here non taxed or taxed sale is no matter, Because no input credit on purchase of CG is allowed which is to be used is mfg. of non-taxed sales. In act the sentence mentioned as CG purchase exclusively for purposes other than making non-taxed sale of goods is eligible for input credit.
Please note it that motor vehicle is not eligible for input credit, as mentioned in act.
Charging VAT now create double taxation, which is against VAT rule.
Sir, may be i will be wrong, but if you will get other answer, please update me also.
Thanks
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 27 July 2011
Dear Vikas, I m telling this after reading the lines highlighted by you... The sentence itself said that Where a dealer sells capital goods which he has used since the time of purchase exclusively for purposes other than making non-taxed sale of goods, and has not claimed a tax credit in respect of such capital goods under section 9, the sale of such capital goods shall be exempt from tax.
It Means Capital goods which is exclusively used for making sale of taxable goods only.... Here Other than means except non taxed goods..
Ravi Verma
(Chartered Accountant)
(44 Points)
Replied 27 July 2011
Netraraj
(account assistant)
(87 Points)
Replied 28 July 2011
Sales tax will be charged. as mentioned by RV
MUKESH SHARMA
(B.Com , MBA, CS*)
(108 Points)
Replied 28 July 2011
Sales Tax Applicable
And in case of Vehicle , tax amount fixed which have to deposit in the dept..
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