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Vat on sales of fixed asstes

ashu's (student) (78 Points)

10 September 2011

A registered dealer in Delhi sale their car (fixed asstes) on Rs. 250000.00. I want to know whether VAT is applicable or he have to pay any tax on this sale. If yes, then what is the amount and section as per Act.

Kindly do the needful.

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8 Replies

RAKESH (Almost CA) (2199 Points)
Replied 10 September 2011

I think VAT is applicable on sale of Fixed asset. Rate and section i cant tell because VAT differs from state to state. I m telling the position prevailing in my state.

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Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 10 September 2011

Vat applicable 12.5% in sale of car

C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 10 September 2011

Vat is applicable @ 12.5% on sale of asset within maharashtra.

And net amount X will be 250000 * 100 / 112.5 and

Vat Amt Y = X * 12.5%

Total Amount X + Y = 2,50,000

D VARA PRASADA RAO (Student (Articles Completed)) (173 Points)
Replied 12 September 2011

VAT is Not applicable on sale of Fixed Assets held for the use of Business Purpose........VAT is not applicable in the State of Andhra Pradesh.

jerome (student-cpt) (31 Points)
Replied 12 September 2011

if it is a second hand car then VAT is not applicable(according to my knowledge). because VAT is value added tax and so it is payable only if any additional features are installed in the car unless no need of VAT..........

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ASHU SHARMA (CA STUDENT) (194 Points)
Replied 12 September 2011

Vat is not applicable on sale of Fixed Assets.

C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 13 September 2011

Vat is also applicable on sales of second hand asset.

Yatender Sharma (Senior Accountant) (146 Points)
Replied 30 October 2011

Vat is applicable on the sale of Fixed assets whether it is a car or any other machine use in a Business or purchase in the name of firm/company etc. Vat rates can be differ by States. so see your Vat Shedule.