Gold purchased in individual name

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This query is : Resolved

Rajeev Gupta (Querist)

26 February 2011 if person A has purchased gold worth Rs 50 lacs from a gold dealer, and paid 1% Vat on that also the payment is made throght cheque. after some time he want to sell this gold to one of his friend B who is not a registered dealer. Is B is allowed to buy from A or vice versa. and also is there any implication of VAT. and in second case if B is any pvt ltd. company then what will be implication of VAT.

Surrender

Surrender (Expert)

27 February 2011 Local VAT registration may be necessary for the Seller;
Revenue (VAT) would have to be secured to the extent the seller overcharges than his purchase price;

Rajeev Gupta

Rajeev Gupta (Querist)

28 February 2011 Neither the buyer nor the seller is into the business of buying and selling of gold. they are just buying it for one time and selling it for one time. and also they bought this gold as an investment, not a stock in trade. then also they are required to take VAT registration

Surrender

Surrender (Expert)

28 February 2011 If the value of sale transaction is within maximum limit upto which one is exempted from registration under VAT Act of the State concerned ?

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