RECOVERY OF MOBILE PHONE FROM F & F
This query is : Resolved
TARUN DHINGRA
(Querist)
05 October 2009
Whether any vat/CST will be paid on mobile phone not surrendered by Employee due to which certain recovery is made from Employees.
CA. B.SRINIVASULU
(Expert)
05 October 2009
It will be treated as sale of asset and vat should be paid on the value recoreved by you.
06 October 2009
Sir i dont practise much of MVAT , but i have a doubt regarding the reply that you have posted .
It will be considered as sale of asset , even if i dont deal in it ??
what i mean is suppose one of my client is having his Vat certificate as chemical dealer , and he sells his business car -Is it supposed to collect Vat even though hes a chemical dealer as per Vat certificate and not a car dealer?
It will be considered as sale of asset , even if i dont deal in it ??
what i mean is suppose one of my client is having his Vat certificate as chemical dealer , and he sells his business car -Is it supposed to collect Vat even though hes a chemical dealer as per Vat certificate and not a car dealer?
CA. B.SRINIVASULU
(Expert)
06 October 2009
The logic is simple. After the introduction of vat you are claiming the vat in the asset as input vat and adjusting agianst your sale dues. Ie vat on capital assets.
Therefore when you are selling you have to pay vat on the same. It will be treated as out put vat.
By doing so you are getting the actual vat.
Otherwise what will happen is say 10Lakhs is the asset you claim 12.5% 125000 as input vat. You sell on the next day without charging tax on the same for 9.5 Lakhs. You are gianing 125000 for 50000 this is not reasonable.
I hope now you can analyse.
Therefore when you are selling you have to pay vat on the same. It will be treated as out put vat.
By doing so you are getting the actual vat.
Otherwise what will happen is say 10Lakhs is the asset you claim 12.5% 125000 as input vat. You sell on the next day without charging tax on the same for 9.5 Lakhs. You are gianing 125000 for 50000 this is not reasonable.
I hope now you can analyse.
TARUN DHINGRA
(Querist)
07 October 2009
What if the Dealer has not claimed any VAT at the time of purchase of Capital Asset, i.e., Mobile Phone.
20 July 2025
What if dealer did not claim VAT at purchase of mobile phone?
If the dealer did not claim input VAT on purchase, it doesn’t affect the company’s recovery from employees.
The company’s cost of mobile phone remains the same; VAT issue is between dealer and supplier.
Company recovering the phone’s cost from employee is independent of dealer’s VAT claims.
If the dealer did not claim input VAT on purchase, it doesn’t affect the company’s recovery from employees.
The company’s cost of mobile phone remains the same; VAT issue is between dealer and supplier.
Company recovering the phone’s cost from employee is independent of dealer’s VAT claims.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
