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Vat liability

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MANNU

Senior Article Assistant

26 Points Posted on 26 March 2014

Dear Fellow Members

Please help me out in knowing that

if a company is not regd. under VAT, but in the course of the business it comes comes across cetain activities which covers VAT liability eg. Sale of Second hand /used motor car to any entity etc

Then is the company liable under VAT compliance ?

Please advice with some proof in respect of both the liabiity of company as how to ascertain /pay such Tax

With Regards

Mannu Jagnani

Replies (2)

saravanan

Accountant

27 Points Posted on 26 March 2014

Dear Mannu,

Once the business turnover across Rs. 5,00,000/- for manufacturer Rs. 10,00,000/- for traders for a year. you can register your business with the department then only you can pay and collect VAT on your sale invoice and claim input tax on purchase invoice.