CA. O.P. Agarwalla's Expert Profile

Queries Replied : 570

I am a Guwahati based Chartered Accountant. I serve my clients on direct and indirect taxation matters.

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Kanthilal says : VAT on sale of preowned car in karnataka
A company having its Regd office in Delhi and branch office at Bangalore wants to sell its used car. The Company had purchased goods from within the State and not availed the benefit of Input VAT Credit. Now, at the time of resale whether VAT under Karnataka VAT Act will be applicable? If so, on what value and what rate? Original Purchase price was Rs 3.66 L (inclusive of VAT). WDV now is Rs 2.96 L.

Dhiraj Manandhar says : vat
ABC Pvt. Ltd is an agreement with DEF Pvt. Ltd. for providing repair centre service all over in india and consolidate bill is to be raised to DEF Ltd. and not from end user who came for repairing and for this ABC has to open the repair centre all over india.Now my queries are 1. how do we transfer the material to our own service centre? 2.Do we need vat registration? 3.what will be the best procedure from the angle of VAT. would request you to clarify the matters.

ashok says : Input tax credit in WCT
I am an Interior Decorator (Making & Repairing furniture items and others). I am registered in MVat. My work involves supply of material & Labour (mostly furniture items). I charge vat @ 12.5% on new works & vat 8% on repair works. But now the problem arises on Tax Credit. I purchase @ vat 5% & 12.5%. I Sale @ vat 8% & 12.5%. I presently follow the credit system as : (1) First I reduce the total input tax(4% & 12.5%) paid on purchase from 12.5% vat sale. (2) The balance of input tax credit is reduce by 36%. Example : Tax collected on Sale @ 12.5% - Rs.50,000/- @ 8% - 1,00,000/- Total Tax paid Purchase of 12.5% & 5% = 90,000/- Computation of tax (a)Sale tax collected on 12.5% sale – tax paid on purchase = 50,000 - 90,000 = 40000 (40,000/- tax credit to be reduced by 36% = 14,400) (b) Therefore Tax payable = 50,000 + 1,00,000 – 90,000 + 14,000 = 74,400/- Do I follow correct input tax credit system.

ashok says : wORKS CONTRACT IN MAHARASHTRA (MVAT)
I am an Interior Decorator (Making & Repairing furniture items and others). I am registered in MVat. My work involves supply of material & Labour (mostly furniture items). I used to charge vat @ 12.5% for all interiors works but now the party refuses to pay Vat on labour. It now possible to exactly bifurcate between sale value of material and labour charged as even small repairs works involves some materials (nails, screws, handle). I am not registered in Service Tax as I am not liable. 1. How should I charge Mvat Tax? 2. Is there a standard ratio in which I should charge vat on the total Invoice value?

c.a.manish dedhia says : Gift Judgements
please email me the following case laws CIT vs. Popatlal Mulji 1975 CTR (Bom) 92 P.A.C. Ratnaswamy Nadar & Sons vs. CIT (1962) 46 ITR 1148 (Mad) Supreme Courts Judgement in CIT vs. Dr. R.S. Gupta (1987) 60 CTR (SC) 115, on manishdedhia21@rediffmail.com