Vat charged on sale of old furniture
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 September 2011
Dear Sir, We are transacting old furniture i.e; selling existing fixture and furnitures to another company in as in where state. Is it liable for VAT?
If not, please read follow up scenario. We have already charged the other party VAT in this transaction. Is it mandatory for us to deposit it to VAT Department or we just keep the taxed amount with us and book as part of sale of furniture etc or return to the party in good faith? What if we just keep the tax amount against any future liability and do not deposit with VAT?
We are worried about the liability hence VAT is charged in first place.
Please advise.
If not, please read follow up scenario. We have already charged the other party VAT in this transaction. Is it mandatory for us to deposit it to VAT Department or we just keep the taxed amount with us and book as part of sale of furniture etc or return to the party in good faith? What if we just keep the tax amount against any future liability and do not deposit with VAT?
We are worried about the liability hence VAT is charged in first place.
Please advise.
MJ Krishnamurthy
(Expert)
27 September 2011
Mr Author,
Sale any asset by a dealer becomes taxable,whether it is old or scrap.It is good if you have already collected tax.Collected tax can not be reained and used for future adjustments.Deposit it immediately to the VAT office,otherwise,it attracts penalty and interest.
MJK
Sale any asset by a dealer becomes taxable,whether it is old or scrap.It is good if you have already collected tax.Collected tax can not be reained and used for future adjustments.Deposit it immediately to the VAT office,otherwise,it attracts penalty and interest.
MJK
14 October 2011
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