should vat collected while selling the machinery ?
4 Replies
Anandan
(HOD accounts)
(502 Points)
Replied 13 February 2013
@ Rishab, Yes you should collect vat, while seliing the machinary.
Regards
Anandan.s
Akshit
(Article)
(35 Points)
Replied 15 February 2013
Here I am assuming that the machinery u are talking about is a used machinery.
When selling a machinery (capital good), the implication of VAT depends upon two things:
1) You must have used that machinery for making goods which are taxed when sold, and
2) You should NOT have taken input tax credit on purchase of such machinery.
If both the conditions are satisfied, only then you are EXEMPT from paying(or clooecting) VAT on the sale of machinery.
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