Clarification

This query is : Resolved

CA Nitin Wadhwani (Querist)
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22 August 2008 SIR

I WANT TO KNOW THAT "WHETHER THE VAT APPLICABLE ON SALE OF OLD VEHICLE" IN SERVICES SECTOR COMPANY.

MY CA HAS SAID THAT VAT WILL BE APPLICABLE ON SALE OF OLD VEHICLE. HOWEVER THE COMPANY DID NOT CHARGE THE VAT ON SALE OF OLD VEHICLES AS YET.

Answer Is Yes

Vat Is To be Charged.

If The Co. Has Sold The Vehicle Without Charging VAT Then The Selling Price Would Be Considered As Inclusive Of VAT.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 If Selling of Old Vehicle is not my Bussiness.. and it is incidental.. why should i charge VAT

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Mr. Nitin Wadhwani

can you justify your answer with any reference

I Say it doesn't comes under the meaning of goods

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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22 August 2008 Just Read The Definition Of "Goods" and "Business".

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 You have not Given any Reference

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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22 August 2008 Definition Of "Goods" and "Business" in MVAT Act is Nothing But A Reference Only.

Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)
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25 August 2008 Normally VAT shall not be chargeable on sale of old vehicle. But Department sometimes insiist on it. In case of cars, especially, CAr is purchased originally paying VAT On it. Bu very concept of VAT, VAT shall be charged on addition in Value. But in these cases, value shall be always reduced. and therfore under the reverse VAT Machanism, VAT shal not be payable. I have won my own case on these grounds.

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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26 August 2008 Can U Plz Provide A Copy Of That Case.

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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01 July 2009 Yes.
VAT is chargeable.

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