CA Santosh Kumar Eligeti (Partner) (151 Points)
04 April 2015Hi all,
Suggest me with suitable answers on the following situation...
There is a Car dealer in Telangana who purchase Cars from Bengaluru based dealer on CST basis.
If he purchase 10 cars and use 2 cars for his office.
Then what to do? Will there be any applicability of VAT on such 2 cars used for his own office purpose?
As per Excise Act self consumption is equal to sales. Will the same concept be applicable in VAT too?
Whether the dealer has to pay VAT on 8 Cars or 10 Cars?
bunty
(service)
(26 Points)
Replied 04 April 2015
vat is applicable on purchases and not on consumption. Hence CST will be applicable.
CA Santosh Kumar Eligeti
(Partner)
(151 Points)
Replied 04 April 2015
Yes Mr. Bunty I know that. But what about the difference tax which will be the loss of the Department.
In the case the dealer submitted C form. So it is the proof that the goods will be traded in other state. What happened is different... The dealer consumed for his own purpose instead of trading.
In my opinion the dealer has to show it as sale and have to pay VAT..
CAclubindia
