maharashtra vat is applicable on sale of fixed assets or not please tell me with the applicable provisions....
11 Replies
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 04 August 2014
VAT is applicable on sale of goods .
Goods means any moveable property .
Hence MVAT is applicable on sale of fixed assets.
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 04 August 2014
land is immovable .....hence no VAT ..........building sold after completely build then VAT is applicable
CA Parul Saxena
(CA)
(8488 Points)
Replied 04 August 2014
If a company has sold its own building purchased during the year then what are the vat implications???? The company is not the builder.
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 04 August 2014
i m assuming that the company has an office in the sold building .........The company will have to make a bifurcation between the assets sold within the building and the building itself ...........VAT would b applicable on the other fixed assets and not on the sale of building ...
CA Hardik Bunha
(self)
(2121 Points)
Replied 05 August 2014
if property is ready(CONSTURCTION FINISHED) then VAT will be applicable.
If Property under construction and payment received in installment then NO VAT will be applicable.
CA Parul Saxena
(CA)
(8488 Points)
Replied 05 August 2014
Mr.Harish i have stated earlier that the co. is not a construction one it has purchased a flat during the year and has sold the same.
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 05 August 2014
Dear Parul Saxena
I think i answered your query ???
CA Parul Saxena
(CA)
(8488 Points)
Replied 05 August 2014
can you please give any provision or circular in this regard that vat is not applicable on sale of building
CA Hardik Bunha
(self)
(2121 Points)
Replied 05 August 2014
you thinks only one side.
someone in this post said land is immovable.
there is a no specific provision under MVAT but u have to follow service tax rule, under that rule it is specific given that i had told u.
you will not apply for lumsump scheme for this VAT.
if u buy properties then VAT paid and sold then VAT collect after effect that u have to remining amout to government.
Alok A Bhavsar
(CA Final Student)
(82 Points)
Replied 07 August 2014
CA Parul Saxena
Pls find attached file it may usefull to you
Attached File : 472271 1349061 vat to developers.pdf downloaded: 134 times
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