Hi,
If a prop firm deals in a tax free goods(i.e cloth) having no Vat no., sell a part of its used machinery. weather vat is payable on the sale value of the used machinery.
what is the Vat Treatment in this case.
Thanks & Regards
Deepak
CA. Deepak Narula (B.Com., ACA, DISA) (541 Points)
15 February 2012Hi,
If a prop firm deals in a tax free goods(i.e cloth) having no Vat no., sell a part of its used machinery. weather vat is payable on the sale value of the used machinery.
what is the Vat Treatment in this case.
Thanks & Regards
Deepak
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 10 March 2012
Mr D Narula,
In this case if the total sale value of the machines exceeds the minimum threshgold limit for registration,(Rs 5 lakhs in Karnataka)then tax liability arises on the whole receipts at the rate applicable in your state.You have to issue invoices for such sales,collect VAT and declare in the returns. The input tax,if any applicable can be deducted also.......MJK