Applicability of vat on second hand cars

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This query is : Resolved

satish kumar durai (Querist)
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30 September 2014 Dear All

What is the basis of deciding the state to which the VAT Payment belongs to in case of Sale of second hand cars - Is it Vehicle Registration No of the Car or any other reason ?

Will the answer be different if the Car is a third Sale where it was purchased in one State Say Karnataka - Sold in another State (Road Tax paid but Registration No not changed )Tamil Nadu and then again sold in another State Gujarat -

Your views will be highly appreciated if quoted with relevant sections or circulars in this regard

A. Sankaranarayana

A. Sankaranarayana (Expert)
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30 September 2014 Dear Mr. Satish,

in the act, they use the word "used Car" - so second hand and subsequent hand is consider as same as per my view.

Damodaran

Damodaran (Expert)
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02 October 2014 In tnvat act it's mentioned user motor vehicle, its applicable for all the subsequent sales. If the car purchased from other state, you have to charge VAT @14.50%.
Please refer notification No. GO No.36

Damodaran

Damodaran (Expert)
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02 October 2014 In tnvat act it's mentioned used motor vehicle, its applicable for all the subsequent sales. If the car purchased from other state, you have to charge VAT @14.50%.
Please refer notification No. GO No.36

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