Vat on second hand card dealer
Querist : Anonymous
he purchases second hand car from different individual (no one gives bills hence NO VAT paid by him).
Now he sell that cars after furnishing. Now he wish to register under VAT , so at the time selling he will issue invoice on which VAT shall be charged.
My question is whether we should register him under VAT (MONTHLY TURNOVER APPROX 50 LACS ---VAT 5 % ) 'OR' WE SHOULD SHOW HIS INCOME AS 'COMMISSION INCOME' --> MONTHLY APPROX 7-8 LACS [THEREBY REGISTER HIM UNDER SERVICE TAX @ 15 % ] ??
If you are not a dealer help marketing of second hand vehicle on commission than not required VAT. If Commission income exceeds Nine lakhs you have to opt for Service tax registration Threshold limit will be Ten lakhs for registration.
Querist : Anonymous
BUT IF WE SHOW COMMISSION INCOME THAN WE HAVE TO PAY 15 % ON 7-8 LACS PER MONTH ONLY. (YES COMMISSION EXCEED 10 LACS IN THE YEAR)
IN BOTH CASE WHICH ONE YOU SHALL PREFER??
If you are only bring buyer and sellers together and charge commission for transactions than not required VAT.
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