Vat on sale of old office furniture & p &m
This query is : Resolved
21 September 2013
Dear all
I want to sell my old office furniture and Plant & Machinery in Mumbai
How Much VAT should I charge in this resale
I am selling this on Lump sum basis.
I want to sell my old office furniture and Plant & Machinery in Mumbai
How Much VAT should I charge in this resale
I am selling this on Lump sum basis.
22 September 2013
If you are selling them as scrap it is just 5% vat only.....mjk
Message likes :
1 times
22 September 2013
i also wanted to know can i get credit of VAT on this sale against my normal purchases.
02 August 2025
Here’s a summary regarding **VAT on sale of old office furniture and plant & machinery (Mumbai, Maharashtra)**:
### VAT on Sale of Old Furniture & P\&M
* **If sold as scrap or used goods:**
Usually VAT is charged at a **lower rate (around 5%)** on the resale of used goods or scrap.
* **If sold as used assets (not scrap):**
VAT might be charged at the applicable rate on the sale value (usually the same rate as new goods, unless specified otherwise).
### Input Credit on VAT Paid on Sale
* The buyer (if registered dealer) can claim input VAT credit if the purchase is for business use and VAT was properly charged and documented.
* **Seller cannot claim input VAT credit on VAT collected on resale** because VAT on sales is output VAT, not input.
### For the seller:
* VAT collected on sale is **output VAT** and should be paid to the government.
* Input credit is claimed on VAT paid on purchases related to your business (not on the VAT you collect from customers).
### Specific to Maharashtra VAT:
* Check if your sale falls under the category of "sale of used goods" or "sale of scrap."
* Scrap sales generally attract VAT at 5%.
* Used goods may attract normal VAT rates unless exempted or reduced by notifications.
---
**Summary:**
* Charge VAT at 5% if sold as scrap.
* Otherwise, VAT as per applicable rate on used goods.
* Buyer can claim input credit if conditions met.
* Seller cannot claim credit on output VAT charged.
If you want, I can help you with references to Maharashtra VAT circulars or rules. Want me to?
### VAT on Sale of Old Furniture & P\&M
* **If sold as scrap or used goods:**
Usually VAT is charged at a **lower rate (around 5%)** on the resale of used goods or scrap.
* **If sold as used assets (not scrap):**
VAT might be charged at the applicable rate on the sale value (usually the same rate as new goods, unless specified otherwise).
### Input Credit on VAT Paid on Sale
* The buyer (if registered dealer) can claim input VAT credit if the purchase is for business use and VAT was properly charged and documented.
* **Seller cannot claim input VAT credit on VAT collected on resale** because VAT on sales is output VAT, not input.
### For the seller:
* VAT collected on sale is **output VAT** and should be paid to the government.
* Input credit is claimed on VAT paid on purchases related to your business (not on the VAT you collect from customers).
### Specific to Maharashtra VAT:
* Check if your sale falls under the category of "sale of used goods" or "sale of scrap."
* Scrap sales generally attract VAT at 5%.
* Used goods may attract normal VAT rates unless exempted or reduced by notifications.
---
**Summary:**
* Charge VAT at 5% if sold as scrap.
* Otherwise, VAT as per applicable rate on used goods.
* Buyer can claim input credit if conditions met.
* Seller cannot claim credit on output VAT charged.
If you want, I can help you with references to Maharashtra VAT circulars or rules. Want me to?
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