applicability of vat

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uma shankar rai (Querist)
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24 April 2009 please advise whether we could transfer the spare part to other company books through journal entry and wheter vat is applicable on such transfer or not

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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24 April 2009 If you are booking entry into your books then there is a clear indication that you sold it. Also you will book entry for receipt of payment.

So i think VAT should be there.

CA Parvin Ahuja

CA Parvin Ahuja (Expert)
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24 April 2009 If you are transferring spare parts to other company it will be treated as sales and VAT will be applicable on it. You must raise an invoice also.

Jagdish Bhalia

Jagdish Bhalia (Expert)
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30 April 2009 You have to pay VAT on the above transfer and you have to raise VAT Invoice for the said transaction

Dayal

Dayal (Expert)
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17 May 2009 please clarify the legal standing of the recipient company, whether its the same company or it is a separate legal entity.

also state the reason for such transfer.

and whether you have availed input vat credit.

If not availed nothing is required to be paid, or just reverse the input vat credit in your books equally

CA. Satyendra Kandari

CA. Satyendra Kandari (Expert)
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06 April 2015 Dear Dayal,
I agree with you. I will be highly thankful to you if you can provide a case law regarding this case. I need the same in an appeal similar to this case.

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