Nitin Singhal (Gaining knowledge...) (320 Points)
30 May 2010Hello Freinds,
I have a purchased a car in my own name and brought that car into my business(proprietoship) and claiming all expenses relating to car as expense in INCOME TAX. Now I want to sell that car. The QUESTION is whether sales tax would be leviable on this or not as selling cars is not my business. Also I had not claimed input credit on this car in my business.
RAJU
(LEARNER)
(1089 Points)
Replied 31 May 2010
Hi Nitin,
VAT is required to be paid on sale of goods whether it is done in the routine course of business or otherwise.
Regards
Dharmaraju
karthik
(audit staff)
(87 Points)
Replied 31 May 2010
sales tax not applicable for sale of car because that car used for own use.
Nitin Singhal
(Gaining knowledge...)
(320 Points)
Replied 31 May 2010
Hello Karthik ji,
When we are claiming expenses of car ( like petrol, repair etc.) as expenses of business in Income Tax Act. Then how would we be able say that car is for personal use in Sales Tax.
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 01 June 2010
it is a fault of ETO
CAclubindia
