Sale of Fixed Assets

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A company has sold his Fixed assets to another company in same state which is authorized by their MOA & AOA. Their regular course of business is dealing in household goods.

While sellilng the fixed assets, the seller has charged the VAT as it is hudge amount of assets which is getting transfered and the buyer is a mfg. company so they will claim the input vat credit on purchase of fixed assets.

Now, the seller, while filing is monthly VAT return, how he should show this transaction in his VAT return ? Should he show this as his sales as in VAT Form their is no column for Sale of Fixed assets and how he has to show in Annexure-II as he cannot show it as his regular sales ?

Kindly suggest your views.

Replies (1)

answer to 1st query ..purchase can never take vat credit on 2nd hand goods....the are not eligible for vat credit

 

2nd in return it have to show as sundry sale ....


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