banner_ad

Karnataka vat on sale of scrap

This query is : Resolved 
Profile Image

Profile Image

(Querist)
03 February 2012 Karnataka VAT:

When a Car is purchased for business purpose, whether it is possible to take input VAT credit, if input VAT paid on such purchase?

If such Car is resold, whether dealer should collect and pay output tax? if yes what is the rate under Karnataka VAT?

while purchasing the car if dealer not taken the credit of input tax, whether he is liable to collect and pay output tax on resale now?
Profile Image

CA. Hari Kishan

Profile Image

CA. Hari Kishan (Expert)
03 February 2012 Mr.Ganapati

Input tax credit is not allowed on purchase of a motor vehicle as the same is restricted goods under 5th schedule. (For a dealer not in trading of motor vehicle).

However on sale of motor vehicle there shall be VAT payable presently @ 5% under the Karnataka VAT Act, 2003 as the same are goods under KVAT Act, 2003.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details