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Scrap Sales from Contsuction business under VAT

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This query is : Resolved

sasidhar vunnam (Querist)

12 July 2022 Dear Sir/Madam

We(Partnership Firm) are in construction business in 2008 and have sold scrap arising from such construction activities.We are not VAT registered dealers.But COmmercial Tax dept raised the notice that the same has to be disclose as Sales of Goods and needs to pay VAT to the Govt.

Our Contention is that the same is not goods and has sold scrap which is not goods.

Please help us.
Please feel free to contact for any information/clarification

Ph No:9494361883

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 July 2022 As you were holding VAT registration no., so you had to collect Tax on selling of Taxable Goods. Though Scrap Sales is under Taxable Sales Categories, you were liable to pay VAT to the Govt on sales of Scrap.

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