A Ltd. renovated a place for opening a retail showroom. They invested 50 lakhs for all renovation, equipment, interiors etc. After 2 years, A Ltd is selling the same business to B Ltd. B ltd assure A ltd to pay whole amount of investment in fixed assets which is made by A Ltd before two years. Now A ltd has to make a invoice on B Ltd. Whether VAT will apply on it. If yes, then what rate of VAT, the rate which they have paid when they bought the material or the rate which is applicable on Ready assets. How A ltd will treat this whole transaction in their books of accounts. If the date of sale of business is 1st december, but B ltd approved and accepted all details on 23rd January, what will be the date of bill and what will be A ltd`s liability?
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