Dear All,
Please answer the following Query:
we are a service provider and so not registered under VAT. Now we affected a sale of Asset to group company and amount is above exemption limit for registration mentioned under Act. To explain better assume we are Company "ABC" and group company is "XYZ".
Both ABC and XYZ are not registered under the MVAT till date
ABC purchased Assets in 2008-09 and paid sales tax to vendors and capitalised the same. Now the same are sold to XYZ.
Queries :
1. DO "ABC" and "XYZ" requires registration under MVAT ACT.
2. Can "ABC" claim credit for VAT purchased on purchase of asset
3. Can XYZ claim credit of VAT paid to ABC ( Assets consist of office equipment,furniture and computers)
CAclubindia
