Renuka Thakur (Articled Assistant) (82 Points)
18 January 2013A Production process has been developed by an individual and sold by him for Rs. 1 cr. He has no TIN & service tax number. This transaction is not is normal course of business.Whether he is liable for sale tax or any other tax?
IMAM
(ARTICLE ASST.)
(371 Points)
Replied 18 January 2013
HI
GIVE DETAILS ABOUT THE LOCATION OF YOUR BUSINESS WETHER IT IS IN SEZ OR NOT AND TYPE OF GOODS PRODUCED IN BUSENESS
Renuka Thakur
(Articled Assistant)
(82 Points)
Replied 18 January 2013
He does not perfom any production activity.It is a single transaction.He has no business.He is a salaried employee in Delhi.He developed a know how and sold it.He is not a regular dealer.Tell me whether liability of tax arises or not?
M.K.AGGARWAL
(TAX CONSULTANTS)
(232 Points)
Replied 19 January 2013
Renukaji,this is a case of know how sold to other co.for his production. So that,it is a case of Service given to other co. & Service-Tax no.reqired for this type of transtion.
Renuka Thakur
(Articled Assistant)
(82 Points)
Replied 19 January 2013
Sir, technical know how is covered under DVAT as goods. So only VAT can be levied.But as this transaction may not be in the course of business. The person may not be called Dealer.Hence, no VAT is chargeable. As this is goods & its sale can be taxable only in DVAT not in service tax.Sir, do you agree.Please reply.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
