What is the rate of tax on sale of second hand vehicle with in the state & what is the rate of tax when sold to out of Maharastra?
Please clarify!
Thanks a lot if anyone replies
3 Replies
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 27 December 2007
You have to charge vat on sale of old vehicle @ 12.5% and as per rule 54(a) no se toff is available to purch. of motor vehicle.
CA. O.P. Agarwalla
(C.A.)
(2916 Points)
Replied 02 January 2008
Mr. Daga had replied correctly. As per rule54(a) ITC not available on Motor Vehicles (used as passenger vehicles.......)....
I personally do not understand, why few State Govts are leving double taxation on vehicles? This is not expected VAT spirit. Persons who are registered dealer or who are otherwise liable for registrartion are only liable for VAT on resale of used vehicles.
Adv. S Sharma
(Lawyer)
(574 Points)
Replied 02 January 2008
well, i thnk resale of used viechle is not big commercial transaction in India. it is done by registered dealer only in few cities, thats why set off is nt availale.
i knw it's nt a good ans bt may be this logic behind this lol
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