Bharat Boridkar (Service) (44 Points)
28 July 2011We have a Private Ltd Company having business in 1 year MBA & Corporate Training. Now for getting AICTE approval we formed a New Company which is registered under Section 25
And from April-2011 all business transaction can be happened in new Company only.
WE are selling Trademark & all Assets from Old Company to New Company. As this is a one time transaction (Total cost include Approx 3 Crore).
In this Transactions VAT can be applicable, & if yes then what steps should I take
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 15 August 2011
VAT will be applicable as per prescribed schedule. The valuation of each vatable assets has to be done separately and accordingly vat has to be paid.
Kapil Dev
(Manager Indirect Taxes)
(65 Points)
Replied 17 August 2011
There is no VAT liablity if the business as whole is transffered in scheme of aquisition on a going concern principle. But itemised sale of assets would attaract VAT.
Therefore the contract or aquisition scheme need to drafted very carefuly to avoid different interpretation by tax authroties
CAclubindia
