Vat applicability
This query is : Resolved
sanjay modi
(Querist)
14 June 2012
Dear Sir,
We are a manufacturing concern,tools dies is supplied by our seller party on loan basis,some dies is obsolote during process and the seller party says that we will issue excisable invoice and treat the same as scrap sales and return the material under rule 11 without applying vat liability.whether issuance of scrap invoice without creating vat liability is as per law.Please make clear the view.
Kind regards
Sanjay Modi
We are a manufacturing concern,tools dies is supplied by our seller party on loan basis,some dies is obsolote during process and the seller party says that we will issue excisable invoice and treat the same as scrap sales and return the material under rule 11 without applying vat liability.whether issuance of scrap invoice without creating vat liability is as per law.Please make clear the view.
Kind regards
Sanjay Modi
14 June 2012
It is a deemed sale.
Earlier they have provide you with the tools, now they intend to remove as such by showing a transaction of sale.
The best way would be to return the tools in as is condition to them and then they can dispose of as scrap from their premise by following the procedure under the central excise.
If they intend to remove and treat as sale then you become the buyer and they have to charge appropriate vat on such sale.
Earlier they have provide you with the tools, now they intend to remove as such by showing a transaction of sale.
The best way would be to return the tools in as is condition to them and then they can dispose of as scrap from their premise by following the procedure under the central excise.
If they intend to remove and treat as sale then you become the buyer and they have to charge appropriate vat on such sale.
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
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- TDS- 2026-27 Q1 Correction
- Import Order Cancelled.
- Intimation under section 245
- Capital Gains Tax on Inherited Mutual Fund
- IMS (import of goods) ITC related
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- 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
- 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
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
