05 June 2013
Dear Experts, I dont know whether any experts are viewing this section nowadays. All most all the questions here are unaswered for pretty long time. I request all experts to share their knowledge with the budding fellows. A Ltd. purchases a machinery for Rs.1000000 plus VAT 100000. On the year 1 he has utilised 50000 VAT input credit for his VAT liability. Now on the 2nd years the machinery is sold, what has to be done at this stage now. Thanks & REgards, RAjesh.
06 June 2013
Mr Rajesh, You have to report this event of sale of capital goods to LVO through a letter. Then the market value of the sold machinery(irrespective of the amount realised from sale) has to be ascertained by a CA after giving necessary deduction of depreciation etc.The input tax already claimed on such reduced value is to be reversed(proportionately) in the returns.....mjk
CAclubindia
