Shall be thankful if you please enlighten me on the following scenarios :
Scenario 1 :
A proprietorship firm purchases old Power Tillers (Hand Tractor - Agri Machine), repairs and resale the same. Will there be any liability of VAT ?
Example : ABC & Sons purchase one old Power Tillers from a farmer at 35,000/-. Purchase spare parts from registered dealers of 5,000/- and pays repair charges 4,000/-. Then sales it @ 50,000/-. Will there be any liability of VAT / TDS ?
Scenario 2 :
A proprietorship firm obtains an undertaking from old owner of the Power Tiller, that the power tiller will be repaired by the firm. The firm will also arrange for the sale of the same and will be receiving a certain amount for the deal. Will there be any liability of VAT or TDS?
Example : A farmer authorizes ABC & Sons to repair his power tiller and find customer for the same. He also agrees to pay Rs. 15,000/- for the deal. ABC & Co. purchase spares from registered dealers of 5,000/- and pays repair charges 4,000/-. The farmer signs the sales memo by himself and pays 15,000/- to ABC & Co. Will there be any liability of VAT / TDS ?