we are a manufacturing unit. we have manufactured dies & tools for our customer to produce goods as per their requirement. now we want to recover cost of dies & tools. Since we are not removing dies & tools out of the factory Excise is not applicable. but to recover the cost we are issuing commercial invoice with VAT. is this correct? Is VAT applicable on transfer of ownership? Pls. help...
24 July 2013
transfer of ownership amounts to transfer of property in goods, there is no need that physical possession of the goods should be transferred for the purpose of levy of tax. levy of vat on such transaction is correct
CAclubindia
