Hello sir,
I want to know about vat implication for a trader selling on hire purchase basis in the state of Gujarat....????How vat will be charged...??How can he take credit on input goods..??
Darshan Dodiya (Student CA Final ) (392 Points)
02 January 2013Hello sir,
I want to know about vat implication for a trader selling on hire purchase basis in the state of Gujarat....????How vat will be charged...??How can he take credit on input goods..??
MudraMantri
(Wantapreneur)
(491 Points)
Replied 03 January 2013
Hi Darshan,
I am unware of particularities of Gujrat state, however, since the basic premise of VAT is same for all the state, I can enumerate a point or two on VAT for Hire purchase:
1) Physical delivery is of prime importance in hire purchase transaction which means VAT is applicable at the point of physical transfer. please note that in Hire purchase sale take place at the time of final payment, that too if buyer/Hire purchaser agrees to buy.
2) ITC becomes automatically available.
3) Tax is calculated on on sale price excluding of interest factor.
Please revert back in case you need any clarifications.
Regards
Darshan Dodiya
(Student CA Final )
(392 Points)
Replied 03 January 2013
Thanx Yuvraj....But how the Vat wil be charge ?Is whole of the vat to be charged at first instance or partially at the time of down payment and partially as and when the installments due...???
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