Santosh (Service) (32 Points)
17 August 2010
Sir,
We have a manufacturing plant in Gujarat. Company has provided laptop & mobile to the Managers. Now one of the Manager is retiring & wants to buy the laptop & mobile(which he was using)at depriciated value. I want to know whether this transaction will attract VAT. If yes, how much?
Thanks in advance
Debasis
(MBA(Finance) student>>CS)
(86 Points)
Replied 18 August 2010
No,
It seems to be a personal case.Because your company is not able to provide any type of invoices for the VAT on sale of the Laptop.(provided your company is not manufacturing Laptops).
please make sure that what is the prime business of your firm? what does it manufacture?
if it manufacures laptops,then VAT can be collected..
Santosh
(Service)
(32 Points)
Replied 18 August 2010
Hi Debasis, thanks for replying soon, my company is engaged in pharam manufacturing & will issue the invoice of laptop & mobile to ex-director at depriciated value.
Please clarify the same in this case.
Debasis
(MBA(Finance) student>>CS)
(86 Points)
Replied 18 August 2010
If the company can issue invoice it can charge VAT as the company already paid VAT for the purchase of the same.
Gagan Agarwal
(Manager)
(207 Points)
Replied 25 August 2010
It is a grey area. However, this seems to be a possible solution:
If the total sale value is less then the exemption limit prescribed under VAT Act, then no VAT needs to be charged.
Otherwise VAT will be applicable on sale of goods to employees.
Ravi Prasad
(Self employed)
(148 Points)
Replied 24 September 2010
Since Laptops being goods under the definition of the VAT Act, and you being a dealer in goods as you are a manufacturer, you are liable to collect the VAT on the sales of laptops which are assets of the concern as it is in the course of your business. Even if donot collect tax, you become liable to tax.
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