Vat applicability
This query is : Resolved
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Management System (IMS)
- FTS Taxable under 115A
- Experts need help
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
