Vat on scrap sales
This query is : Resolved
Srinivas K
(Querist)
15 April 2016
Sir,
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on purchases. Now, we propose to sale Scrap which was generated in product manufacturing, shall we pay VAT on scrap sales. Kindly clarify please.
K. Srinivas
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on purchases. Now, we propose to sale Scrap which was generated in product manufacturing, shall we pay VAT on scrap sales. Kindly clarify please.
K. Srinivas
Srinivas K
(Querist)
16 April 2016
Sir,
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on Purchases. We propose to sale Scrap which was generated in VAT exempted product manufacturing process shall we pay VAT on scrap.
K. Srinivas
Our product is VAT exempted product in Gujarat. We are not availing Input Tax Credit on Purchases. We propose to sale Scrap which was generated in VAT exempted product manufacturing process shall we pay VAT on scrap.
K. Srinivas
16 April 2016
Hi,
With regard to your query, VAT rate applicable on purchase of such input materials is itself applicable even to scrap generated from it.
Apart from VAT you are also required to Collect 1% TCS as per SEC 206 of Income Tax Act 1961.
With regard to your query, VAT rate applicable on purchase of such input materials is itself applicable even to scrap generated from it.
Apart from VAT you are also required to Collect 1% TCS as per SEC 206 of Income Tax Act 1961.
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Rupesh Jain
(Expert)
25 April 2016
you have to pay vat as applicable and also collect TCS @1% on the taxable amount+vat amount
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