26 March 2013
I had taken a company car registered in Bangalore. Since i am leaving the company, i want to buyback the car from the company on WDV. Now company says i have to pay 14.5% VAT on WDV for buyback in my name. Kindly clarify whether the same is applicable, since i have already paid all taxes during purchase of the vehicle.
26 March 2013
Please check if you have paid the VAT Tax as you claimed in your querry.
Also is want to clear that if any registered dealer sold any assets to any one it will be treated as sale of goods and the applicable rate of tax is to charge on the same.
In your case rate of tax on sale of car is 14.5% hence you have to pay the same.
the only solution is to lower the amount of tax, by showing inclusive in selling price.
CAclubindia
