sale of business assets whether vat should be paid ,In what all circumstances for e.g input tax not taken on these capital goods
4 Replies
Nitin Grover
(CS)
(1228 Points)
Replied 04 July 2010
Dear Vishal
would you please elaborate your query?
Sale of Busniess Assets means sale of furniture, machn, etc. - its old or regular business of new assets
VAT is on new assets taken by seller from purchaser.
pls elaborate your query
Regards
Vishal Jain A
(Practicing CA)
(941 Points)
Replied 07 July 2010
Hello Nitin
My query is in case a cloth dealer purchases a car which is used fro his business and he has not booked ITC on that Business Asset (Capital Goods). And then he sells that asset. Will he have to pay the local sales tax? and in case he pays the tax will the purchaser book credit for such ITC..
Stress is on the fact that he is not dealar of cars.. And only a dealer is required to pay slaes tax.. Now what does that dealer implies???
Thanks in advance
Nitin Grover
(CS)
(1228 Points)
Replied 07 July 2010
Dear Vishal
No he wont pay TAX on this and can not claim Input. its not allowable under VAT.
As per VAT / Sales Tax its not a capital asset because capital assests means an assests which involve in manufacturing like machinery, etc. not car
Regards
Pankaj
(Student)
(60 Points)
Replied 14 July 2010
Hey But in this case whether the assessee will be liable to pay sales tax on this car????????? because there was a notice from the sales tax demanding such sales tax to be paid?
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