25 April 2012
Suppose X ltd. has sold DEPB license charging VAT to Y Ltd. and after few months X ltd. acquires the same DEPB license from Y ltd. without Charging VAT..
Query: 1> Whether Y ltd can avail credit on VAT paid on purchase under GVAT? 2> Whether VAT is to be charged on X ltd when license is sold to X ltd under GVAT?
26 April 2012
1 . Under section 11 there are conditions narrated as to under what circumstances VAT Credit can be claimed. If the goods were meant for resale VAT credit can be claimed. 2. VAT has to be charged.
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