I have doubt whether vat will be payable or not on Compensation received from Insurance Company against Car Accident and the car was fully destroyed in accident. Please suggest some case law or provisions.
15 May 2012
So far as MVAT is concerned I have not come across any case law in this respect. However please take note of Expl b(i) to Sec 2(23) definition of sale. It states that transfer of property in any goods otherwise than by way of contract is sale. Under insurance contract the doctrine of subrogation provides that the property in goods vests with the insurance company once it makes the payment. However this is an arguable point & worth litigating
CAclubindia
