Vat on insurance claim received for car accident

This query is : Resolved

CA. Ramesh Chand (Querist)
Follow

15 May 2012 Sir,

I have doubt whether vat will be payable or not on Compensation received from Insurance Company against Car Accident and the car was fully destroyed in accident.
Please suggest some case law or provisions.

Amit Sheode

Amit Sheode (Expert)
Follow

15 May 2012 So far as MVAT is concerned I have not come across any case law in this respect. However please take note of Expl b(i) to Sec 2(23) definition of sale. It states that transfer of property in any goods otherwise than by way of contract is sale.
Under insurance contract the doctrine of subrogation provides that the property in goods vests with the insurance company once it makes the payment.
However this is an arguable point & worth litigating

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

xavier

CA. MOHIT SHARMA

Kamaljeet Kaur

SIVALINGAM

ARUN KUMAR

Subscribe Now

Vat on insurance claim received for car accident

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

Accountant