Mvat - implication if bank auctions its mortgaged gold
This query is : Resolved
23 November 2012
Dear Experts,
A Bank in Maharashtra has granted 'Gold Loans' to borrowers.
One of the borrower is in 'default' and bank has got legal approval to 'auction/ sell' the mortgaged gold to recover its outstandings.
What are the implications under Maharashtra VAT for such auction/ sell by the bank???
Thanks in advance for the quick response...
A Bank in Maharashtra has granted 'Gold Loans' to borrowers.
One of the borrower is in 'default' and bank has got legal approval to 'auction/ sell' the mortgaged gold to recover its outstandings.
What are the implications under Maharashtra VAT for such auction/ sell by the bank???
Thanks in advance for the quick response...
24 November 2012
Mr Yuvak,
Yes, all govt,semi govt/local bodies are to collect VAT on the auction/sale of immovable property and deposit the same to the govt.....MJK
Yes, all govt,semi govt/local bodies are to collect VAT on the auction/sale of immovable property and deposit the same to the govt.....MJK
24 November 2012
Sir..thanks for your reply...but just a clarification...
Gold is not an 'immovable property'..would this change your thoughts...also, the bank is not selling the gold on its own..its just a custodian and will have to return back any excess recovery to the borrower...
Gold is not an 'immovable property'..would this change your thoughts...also, the bank is not selling the gold on its own..its just a custodian and will have to return back any excess recovery to the borrower...
24 November 2012
Sorry,that was anerror in my answer. It is a moveable property.I wrongly used the term 'immovable' in the place of 'movable'.
Although they pay back any excess recovered amount VAT is to be collected on the sale proceeds and recovered from such customer along with other items cost of auction etc.....MJK
Although they pay back any excess recovered amount VAT is to be collected on the sale proceeds and recovered from such customer along with other items cost of auction etc.....MJK
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