If a company is manufacturing or trading ready made garments, can it sell off its machinery. Will the machinery so sold be billed on normal VAT invoice? No loan is taken on such machinery?
Pls guide me.
8 Replies
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 12 October 2009
yes you need to raise a retail invoice.
Shamita
(Learner)
(410 Points)
Replied 12 October 2009
Thanks Praveen Sir. But we haven't given in the Sales Tax Deptt., that we will sale machinery. Wil they object or not.
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 12 October 2009
They will not. as this is sale of capital goods. which are being used in business to produce goods.
Gaurav Raichura
(CA-Final Student)
(82 Points)
Replied 13 October 2009
Yes one can sell off its machinery. Further VAT is to be collected by preparing invoice whether there is sale of capital goods or traded goods.
praveen
(Chartered Accountant)
(6971 Points)
Replied 13 October 2009
VAT has to be collected on anything sold
Golden words not to be forgotten "every sale must have an invoice"
There may be specific exemptions for certain sales.
Like in Karnataka if we dont sell used vehicles at profit we need not pay any tax on it.
Check with your state VAT act whether there is any exemption.
Rajeev
(www.rkmco.com)
(985 Points)
Replied 14 October 2009
I dont practise VAT , i have a query regarding your reply .
U mentioned that VAT has to be collected on anything sold .
Suppose if i am a dealer in chemicals and my VAT RC mentions the same, if i sell a car , am i supposed to collect VAT (in maharashtra) even if i am not a dealer in cars , but a dealer in chemicals as per my RC .
Pls state along with VAT provisions , i need to know this .
Was this ever challenged in any court , to your knowledge ?
sanjeev
(Accounts executive)
(69 Points)
Replied 14 October 2009
yes while issuing the invoice you sould charge Vat as it s rate i e @ 4%.
ashish gupta
( student)
(1922 Points)
Replied 14 October 2009
Shamita, sale of machinery is sales for Sales tax dept. n u have to charge the VAt applicable in the state on that machinery n also show the same in VAt retun.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
